Gold and silver held their own today with the dollar falling back a bit. It seems gold wants to move a bit higher but the mining stocks wanted nothing to do with this move up and fell with the overall market. You will remember in the 2008 pullback, gold mining stocks and gold also fell with the overall market.
For those that followed my ETF Research Trading Analysis from yesterday, you will notice that all of the greens on the list did well today; Our greens from yesterday, DUST, JDST, DWTI, DGAZ, YANG, DSLV, TLT all continued higher today. Keep moving stops up to the low of the day for each at a minimum.
The NYSE had a glitch today and this brought in more uncertainty as trading had to be shut down. I’ll be honest with you folks, I am getting more and more phone calls from people who are wanting their money out of the bank. I don’t say this as a fear tactic to get people to remove their money from banks, but to let you know what I’m hearing through the grapevine. If you have seen what is going on in Greece and what could easily occur in other countries, having a little insurance at home with gold and silver is prudent.
We all know if a group of 100 people went to the bank and tried to withdraw 10,000 each, it would put pressure on the banks to come up with the cash to satisfy withdrawal requests. They would have to contact the Federal Reserve and request a truck comes with money. That’s how the system works. Your money isn’t sitting there in the bank earning a little interest waiting for you to come for it. Banks loan your money out to those buying houses, cars or what have you, and then it is fractionally (Google “fractional reserve banking”) loaned a total of 9 times. If just a few of those loans default, your money is technically gone, but you do have insurance from the FDIC up to $250,000. The question is, how sound is the FDIC? Historically they haven’t been to sound, but they are doing ok today.
Now you know a little more about how our system works, but I will go into much more detail in my next book; “Illusions of Wealth.”
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.