I could simply make one statement today and leave it at that; the dollar was weaker today, pushing towards the 94 mark and gold shot up higher. Any questions?
Retail data came out negative and producer prices fell more than expected causing the greenback to lose steam and precious metals to pick up steam continuing their short term trend higher.
We have been discussing this inverse relationship with gold and the dollar and I think it’s important for investors to know what the dollar really is once again.
The dollar is a representation of a basket of currencies and faith in the U.S. dollar over those other currencies. If there is more faith in the dollar over them, this puts pressure on gold.
I am dollar bullish and gold negative for reasons we are mired in a deflationary credit contraction and if you want to know more about this, it’s all in Chapter 4 of my book Buy Gold and Silver Safely I wrote in 2010. http://www.amazon.com/Buy-Gold-Silver-Safely-Learn/dp/0982586116/ref=tmm_pap_title_0?ie=UTF8&qid=1390268867&sr=8-1
If you haven’t read that book, it’s a good place to start.
I am furthering my thoughts on gold, silver, the dollar and the markets in a new book, Illusions of Wealth. You can sign up for notice of the pre-sale for this book here: https://illusionsofwealth.com/
Interviewed by Michael Rivero of whatreallyhappened.com
Today I was interviewed by Michael Rivero of whatreallyhappened.com You can listen to the interview tomorrow by clicking here: http://gcnlive.com/JW1D/index.php/archivespage?showCode=109
Related posts
About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.