I said in yesterday’s Current Thoughts that with the May month we could get a little bounce setting us up for a summer bounce. Today we got our first hint as to this becoming a reality. The dollar was a little higher and there was no real other reason for the bounce in gold, so I’ll chalk it up to patterns.
If we do get a further breakdown in the dollar, look for a further bounce in gold.
Fed member John Williams came out today and said that a summer rate rise is possible if data supports it. That’s like me saying, the Chicago Cubs will make the playoff’s, if they have a better record than anyone in their division. In other words, it’s an unknown. I can talk the talk about how great the Cubs are as a Cubs fan, just like Williams can talk the talk about how great the economy is and how the Fed might raise rates. But he knows the data hasn’t been good. The Fed just needs a mouthpiece to keep the faith in what they do significant.
I know that outside of a couple good unemployment reports, which don’t give the complete picture, the data hasn’t been good. Tomorrow we get more data and because we have had a stronger dollar I don’t expect it to be that good. Gold could benefit. Look at the Gold and Silver Current Thoughts 5-03-2015 for the upcoming data schedule.
I will note again that we did not break the Nov. 5th lows and as long as we stay above that level, then we could get the May bounce leading to a further June, July and August run up. By Sept to October I expect the final smackdown. I do reserve the right to change my mind when my indicators or other significant news changes the game. But that’s why at a minimum you should have some exposure to gold and silver now. It is insurance first and foremost. It gives you a little peace of mind that no matter what happens you have real wealth. It’s an insurance you pay for but also get something back from, maybe more than you paid for it.
Given enough time, you will always get more back from what you paid for it. Just stay away from buying the expensive numismatic/rare/collectible coins and only buy bullion coins and bars. That’s all we sell here at Buy gold and Silver Safely because that is all we believe in. We also scour the internet each week and look at our competitors pricing and undercut them in price. It’s a business model that works quite well for you and for us.
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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