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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Testimonial: Ken H.
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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
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