Today gold opened lower and kept falling while silver stayed positive. Gold was down $19 just after the open after declining in Asia overnight but is up $5 from that low of $1,181.50.
The DOW continued its move higher up triple digits and is thinking the situation with Greece will be resolved. The Greeks seem to think so as well according to the BBX about an hour ago. Greece spells out terms for debt crisis ‘breakthrough’
Treasuries have been up and down of late, trying to figure out what’s going on as well while the dollar has slipped down closer to the 94 region. I would expect a weaker dollar and a possible bounce in gold should the Greek situation get resolved. If that’s the case, some of the mining ETFs may be good for a short run. But gold getting hammered today also shows weakness. I don’t like playing both sides, but the best trade is to wait for the trend to develop so I would be out for now. Why gamble?
I will have a booth at the upcoming FreedomFest in Las Vegas July 8- 11. FreedomFest is where many liberty minded people from all over the U.S. come to listen to various speakers talk about the economy, investments and the future of America. Some of the featured speakers are people I would love to have conversations with/debate like Paul Krugman, Glenn Beck, Steve Wynn, John Stossell, Steve Forbes and even Marc Rubio.
If you happen to be attending, stop by and say hello. I am there because many of my competitors who sell gold and silver are there and I want those who are attending to know how we here at Buy Gold and Silver Safely set ourselves apart from our competition. We do that by offering gold and silver coins and bars at the lowest prices in the nation, guaranteed. We are also the only gold dealer in the U.S. that doesn’t promote anything but bullion coins.
Most dealers also offer numismatic, rare, semi-rare coins and their brokers make huge commissions from the sale of these coins to investors who think they are going to get a higher appreciation than just buying bullion gold and silver. But that appreciation never comes. Historically it came only one time in the late 80’s when they first started grading coins, but since that time, outside of some very rare coins that are traded by the elite, the promise of someone down the road paying more for your collectible coins is never realized. In fact, the way to find out how much the dealer makes is simply ask the question every time you buy from a dealer; “If I sell this coin or these coins back to you immediately at the same spot price, what will you give me for them? If you don’t simply get a price, and instead hear the broker talk about a buy back policy that goes beyond a simple price quote, run for the hills.
Unfortunately many who have already bought gold and silver rare coins know the buyback price is much lower than when they bought. These coins will only appreciate because of the bullion price moving higher. I would think about selling them now, locking in some sort of a loss to write off on your tax return, and simply buying bullion.
One of the speakers at FreedomFest I mentioned is Glenn Beck. He has been promoting one of these unscrupulous gold dealers Goldline for years now. Goldline still does a ton of business because someone who is clearly a trustworthy figure to many says to buy from them. But Goldline salesman still push the expensive collectible coins on the investor. Goldline was in fact sued by the Santa Monica city attorney Adam Radinsky and settled for $4.5 million with the city for their business practices. Yet Glenn Beck still to this day is paid a ton of money by Goldline and this company advertises heavily on the radio, TV and internet, but makes millions from selling high priced coins to uneducated investors. I wrote about this before on this site and in my book, Buy Gold and Silver Safely. In fact, Adam Radinsky and his team of attorney’s interviewed me twice before reaching the settlement. If your company is selling 500 million a year in gold and silver products, what is $4.5 million for a settlement to them? Nothing. But Glenn Beck should be ashamed of himself and I’ll tell him he’s a sell out if I see him in Las Vegas.
There are many companies selling gold and silver. Just know what you are buying and what questions to ask (or read my book) and you’ll be fine even if my predictions of a fall below $1,000 for gold comes to fruition.
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
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.