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Many know I have been calling for lower lows in gold and silver for some time. Many don’t like the fact that I have been doing so, but I have to say that I am probably the only person in the United States who sells gold and is bearish on the metals at present. For that matter, you will find most since 2011 have been bearish on the dollar saying it’s going to crash and yet the dollar keeps going higher and higher. Peter Schiff and Mike Maloney, two competitors of mine have been doing this for years and now in their latest video together, which was bizarre to watch to say the least, they still call for a dollar crash.
Others have been calling for the bottom in mining stocks as well. Larry Edelson called for the bottom in 2013 and again in July of 2014. Steve Savage called for the bottom just yesterday and we fell 10.77% in GDX gold miners ETF and 34% more today in JNUG – junior gold miners ETF. My timing service for ETFs got us that 34% today and also 16% on JDST. I gave these picks to you yesterday in Current Thoughts.
I’m not trying to be cocky in sharing this information with you, but seriously trying to help you become better investors. I give you all I see so you can follow along. I don’t pretend to be anything more than I am, but I am human and of course will make mistakes. But these will be minor in comparison to the hedge fund managers over the years who can’t even beat the market. I explain all of this in detail in my next book, “Illusions of Wealth.”
You may also notice that most of the gold bugs for the last year have been talking about China being a heavy player in gold. With the news that came out last week that they actually had been buying 50% less than expected, many speculators and professionals alike headed for the exits. I didn’t need news to know gold was going lower, but this did escalate things a bit.
The U.S. dollar did get past 98 today. Maybe we get a breather with it now and a bounce in gold. People have been buying the dip dollar cost averaging into a position knowing full well I believe lower prices are ahead. That’s the best way to play the gold and silver market. As I have said a few times before, it’s like buying the DOW in 2009. Some bought at 8500 and some bought at 7500 at the bottom. Both investors today with the DOW around 18,000 are happy investors. So it will be with gold and silver in the years ahead.
I will be writing an article that should come out tomorrow on gold breaking below $1,000 and the strategy of playing it once I write my all in article.
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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.