Repeat after me; gold is trending. So is silver. Gold under $1,200 again and silver still under $17. There is not much one can like about it, but that’s what it is doing at present. There will be a break down and perhaps it will come with the Dollar Index breaking 100 as it is close sitting at 99.47.
I’m not sure how many of you read articles from others who write about gold telling you that the price is going to go lower. While many who sell gold can give you many reasons to own it, like I can, from a macro perspective I try to separate fact from fiction and read the data that I see and follow price action, not ignore it. This leads us to some fiction we have been hearing of late about how Apple will change the gold world demand with their new Apple iWatch.
Well, the news is out. The Apple Gold watch is only going to have $600 worth of 18k gold in it, or about a half an ounce, not the $3,000 or 2 ounces worth that some were speculating would drive demand higher. According to a recent article, “given its price tag and high production volume this makes the Apple Watch a rather poor investment.” The following is the picture they had of the watch. I would prefer Rolex, thank you very much.
For reference, a half an ounce of gold is 1.06 inches in diameter and .09 inches thick (less than 1/10 an inch. It’s not much to brag about.
The release for the watch is April 24th. I have heard prices from $10,000, to $17,000. To compare, your $17,000 today can buy you 13 one ounce gold bars at a spot price of $1,200 and you’ll still have money left over to buy 3 of the lower cost sport edition iWatches.
13 ounces of gold or a half ounce. Heck, with $10,000 you can still get 8 ounces of gold and an Xbox 360 to entertain yourself and friends. Your iPhone can give you the time.
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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.