Today we had a good mid-day reversal after triggering some longs in the morning with the bounce higher. Perhaps a good rule is to be patient for a breakout before going long. The dollar is a little weaker and perhaps we can get a little run and have a nice trade. The risk vs. reward for this run is there as long as we get gold to keep moving higher above $1,200 which it is in Asia as I type.
We do get some inflation data tomorrow and that may trigger a move one way or another. Watch for this report tomorrow on inflation as it may shake up the metals and markets; http://www.cnbc.com/id/102594725
You can take this different ways, but the average price of gasoline today in the U.S. is $2.40 a gallon. In 1964 25 cents or a quarter could buy you a gallon of gas. Today, that same 1964 quarter exchanged for the scrip of the day (dollars) can buy you a gallon of gas because that quarter is 90% silver. A 1965 quarter has no silver and can buy you 25 cents worth of gas or about a 1/10 gallon of gas. Now tell me again what maintains its purchasing power over time, dollars or precious metals? In fact, that quarter today according to coinflation.com is worth $2.94.
There is a reason to have metals in your portfolio. Over time, gold and silver hold their value. The best advice I can give is to dollar cost average into a position of metals. If we do get a lower price, you buy some now and buy some more lower. At some point, the bottom will come and you’ll be relaxing at home or on vacation with the family and smiling with the security that gold and silver offer. We all know the prices will go higher. It’s been proven over and over again. And we all know, based on the purchasing power example above, what governments do to money over time. It doesn’t matter if it is a Democrat or Republican in charge of the country or the House or the Senate. Spending is their job. And spending more than you take in has its consequences. Gold and silver are the insurance against such government action. Get yourself some insurance by calling us at 888-604-6534. In the next few years you’ll be happy you made that phone call.
Yesterday I gave out a Free Sample of the ETF Research Trading Service I Am Offering – I don’t know if I am confusing people with this information, but call me and we can discuss. I don’t bite. I want you to make good profit on your investments with the information I provide. It’s not as hard as people think. I also think I have earned the right with my advice to think that what I know can help you. I’ve been in this business since 1986 and in these 29 years, I think I have learned a thing or two. My next book “Illusions of Wealth” will also help and my last book “Buy Gold and Silver Safely” is still doing quite well on Amazon.com. Many of you don’t know I’ve been working on a 3rd book, a Christian/Political book called “We the Serfs!” It’s my way of telling the world what I believe to be the truth. The more people that are aware, the better this world can be. But governments are the single entity that can mess it all up. We elect them. They serve us. But they mess it up. You can bank on it. 2009 was just a prelude to what will come. We can profit from the ups and downs in the meantime.
Next report is Sunday. Enjoy your weekend!
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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.