Yesterday I said “If you don’t own gold and silver, dollar cost average into a position on the dips. Buy some now and buy some at lower prices for a better overall good price. The future will take care of itself. Governments will always screw it up.”
Tomorrow we find out if they believe their own hype. Unemployment by their accord is just fine. Economy is just fine. Stock market doing well. Real estate has bounced back. Banks are no longer an issue. Derivative meltdown potential a thing of the past. Do you fell good about the economy personally? Can you separate the economic data from the stock market euphoria? Can you trade the stock market long even though you know somethings afoot with the economy?
I could write a book on what’s wrong with the economy. I actually am, lol. But if the stock market is going higher because the perception is the Fed has everything under control, I am going long the stock market. Conversely, if gold is going lower, I don’t want to be in gold except as insurance and buying the dip when it comes. Investors are buying the dip in gold and they aren’t complaining. They don’t sell because we hit some lower lows. They know eventually is going to be some problems that develop. But tomorrows Fed decision will finally tell us what we have been waiting a year for; what THEY really think.
Today we saw a nice bounce in gold and silver. Is this the second dead cat bounce or still part of the first? I have to say still part of the first as the first one I have said was rather pathetic. It just looks like this cat has been goofing off before its eventual death (no offense to animal lovers here). In other words, no matter what happens with the Fed tomorrow, the metals will continue to fall in price.
I know many of you reading this don’t like to hear me say this, but you have to at least give me credit for saying it with conviction for so long. After you read my next book you’ll know even more on why I think the way I do about our future. You know I try to back everything up with some data and I don’t join the dollar crash/hyperinflation bandwagon like all other gold dealers. I simply want you to do the right thing. Keep in mind, as I have said many times, get some if you have none. The rest of you, I pray I can call things correctly. Tomorrow will simply be fun for me!
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.