My timing for the article I wrote for Seeking Alpha last week, which I referenced in Current Thoughts yesterday, was calling for lower prices in gold. Today we took a bit of a dive early and recovered a bit. I had said yesterday that it just seems like there isn’t much that can spark gold higher. Even the stock market in the midst of a decent decline isn’t pushing the bid up in gold and silver, but it is giving treasuries a boost. Ironically, the dollar rose a bit and then fell to about where it started so was a non-event today.
While central banks of the world fight deflation with more QE after more QE, we’re not seeing a bid on any commodities at present. This is what I expect will continue, interrupted intermittently by some bounces which we saw in gold when it went up $25 last Thursday.
The stock market is very confused right now. The Fed didn’t do it any favors last week showing its hand as being cautious about growth and not raising rates. The dollar caught a bid when Japan said it would continue its march towards 2% inflation, just like the Fed is trying. But if you have deflation that is overpowering any QE inflation attempts, what is the choice but to continue more QE? We will see the Fed submit to this at some point again.
There is nothing that is positive with the Fed right now and even the head of the Fed Janet Yellen is succumbing to the pressure of her job as she needed medical attention after her latest speech. She is scheduled to speak again afternoon. Very interesting to see so many Fed members speak this week too. The latest today was Williams who called for a rate hike this year.
Does the market even believe them any longer? CNBC sure doesn’t have a clue about what to expect. They were calling what the Fed did a mistake. I guess if they don’t get what they want to prop up the markets, it’s not valuation related, but a “mistake?” They also ignore talking about the almost $20 trillion of debt on CNBC, except for may Rick Santelli. And they constantly throw up Dennis Gartman as the expert on the markets which really irritates me.
“I think if investors are pressuring themselves to divest…of their commodities trades now, I think they are doing themselves a very serious disservice,”
That’s a quote from Gartman today, a day we saw Glencore PLC fall 28.60% in a sign of the capitulation still to come. There is a reason I have not gone long mining stocks although you see many others saying mining stocks are a bargain. There are problems to come. We offer the timing on mining stocks as to when to buy. The time is not yet but our subscribers will be the first to know when. You can learn more about the Mining Package options here: https://buygoldandsilversafely.com/mining-package-options/
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The nice thing about the Mining Package is it offers 6 months of the ETF Research Analysis as part of the package. Below is a testimonial as to how one trader has done with the ETF service the last few months (I personally have had the same experience).
Testimonial: Ken H.
I began using Doug Eberhardt’s ETF Research Trading Analysis service a few month’s ago. Up until a couple of year’s ago, I was a buy and hold investor, but the loss of bond earnings took away my ability to balance my portfolio. I then got into buying and selling various gold and silver ETF’s. I had mixed results from that. I then learned about Doug’s service through a fellow investor. I have achieved exceptional results from following his Trading Rules and ETF recommendations. Most of my trades have been within one day, although a few have carried over into two to three days of trading. Most of my trades have been less than $10,000, but none have exceeded $20,000 in total funds traded at any one time. During that time, I have earned $10,199 net of commissions. I have had only two losses: one where I stopped out with a “stop loss”, and another where I failed to set a stop loss. I have learned that if I study, learn and follow Doug’s Trading Rules and his daily Trading Analysis recommendations, I can achieve outstanding returns and minimize losses. I highly recommend this service for those who are willing to commit the time.
The ETF Research Analysis is also offered as separate service with a 2 week free trial. Do yourself a favor and check it out and I believe you will get the same results that Ken H. has. You can find the ETF Research Analysis service here: https://buygoldandsilversafely.com/etf-research-trading-service/
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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.
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