The dollar shot up on Friday yet gold only moved down fractionally while silver ended the day green. It’s hard to take credit for predictions of higher dollar and lower gold when you see one, the dollar shoot higher and the other not move much in the opposite direction. Something has to give here.
Being that this is once again a Fed week, and the general consensus is the Fed won’t raise, it could boost gold a bit more as this should be viewed as dollar negative. This is what happened last go around with the Fed. The gold and silver mining stocks today sure speculate this to be the case as they shot up even with the dollar being so strong and gold negative for the day. I know this makes no sense to some of you, but there will be a day of reckoning for gold when and if the dollar keeps rising, which no matter what the Fed does or doesn’t do, is what I am banking on, and with this we should see gold begin to deteriorate soon enough, below that 1000 level bringing silver down with it.
As with any Fed week, expect some volatility in the markets. I am leaning long the markets right now as no move by the Fed should be construed as bullish for stocks. Interest rates are creeping up a bit with the 10 year at 2.09%.
I will be in seclusion finishing up my next book “Illusions of Wealth.” I have been working on it off and on the last couple of years and my goal is having it out just before the stock and bond markets top and the precious metals bottom. That’s why I am going into seclusion, because the time is nigh. Naturally I will still be available to speak to and write my thoughts and ETF reports each day. I hope to bring you the best observations on the metals market and added insight into what the Fed and other central banks willl be doing moving forward. What gives me this insight is what my interpretation of the data tells me. We all see the same data, but I try and put the pieces of the puzzle together a bit differently than most.
If you are not aware or have not done so yet, you can sign up for the announcement of the release of my book “Illusions of Wealth” at https://illusionsofwealth.com Thank you!
Doug 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
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