Gold and Silver Current Thoughts 11-09-2015

Below is what I posted on the metals for the subscribers to my ETF Trading Leverage Service last night.


DUST and JDST we have stayed long and strong and were rewarded big time on Friday. I said before Friday’s report everything that seemed to come true; “it’s all in the hands of one report tomorrow. I expect it to be a good one. For whatever reason I feel like Dan Ackroyd and Eddie Murphy in Trading Places waiting for the Orange Juice report where they already knew the answers. What can stop this market from overall moving higher? Not the negative data. What a great time I feel to have an unemployment report that confirms Steve Liesman’s faith in the Fed that “all is well!”  Like one data piece of positive info that is skewed to begin with can cause the Fed to raise rates. It probably will. As far as CNBC’s concerned, it’s a given.”

As I said above, we are at a big resistance level and I wouldn’t be surprised to see gold move higher and take JNUG and NUGT with it. I would buy that dip in JDST and DUST if it does come. You’ll kind of know from Asian and European trading what is happening with gold and the dollar so trade accordingly come Monday.

 We had a little bounce up in the metals today with a little dip in the dollar. This is to be expected after such a beating gold has taken, especially on Friday. I look for this bounce to continue a bit higher and will decide then where weakness may come in.
Fed members speaking and economic data coming in will all be what to watch now for gold’s micro moves. I still say we are headed lower overall. Naturally the dollar will lead the way as it moves higher.
I think it’s important to point something out here than many are still not seeing, and that is the grasp of deflation that is hitting us. We see it in the charts with lower and lower metal prices and we are seeing it in demand for metals now with China’s latest data coming in showing still signs of weakness in their economy.
China imports more copper than anyone else, 40% of the world’s supply. China’s import of copper dropped 4% this last month giving us more insight into the real economy of China where things have slowed down.
While it used to be for America, as GM goes, so goes the nation, but I would like to change that to; “as China goes, so goes the world.”
China has still to experience their shadow banking issues that I’ll explain more about in my upcoming book, Illusions of Wealth. YANG is a short China play that we have been trading and I kinda like.
While I wrote in the last report that the Fed will raise interest rates come December, they will have a tough time doing it if China continues to head south. China’s hard fall can disrupt markets everywhere. Central banks won’t know what to do.
Gold will become the insurance one needs to keep their wealth in the years to come and maintain purchasing power. We are closer and closer to the bottom but I think we still get that $1,000 mark broken to break the backs of gold bugs. We shall see.


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About Doug Eberhardt

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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