Morning note on 9/9/2015 – looks like the dollar is moving higher and trumping any gold move at present. We have the dollar moving up past 96 to 96.50 and gold down $10 and silver down 12 cents.
From the Trading Desk
The Dow Jones had its second biggest up day of the year and finished up nearly 400 points (2.40%) today. US participants came back from the long holiday weekend with optimistic sentiments, particularly encouraged by expectations for additional economic stimulus measures from Chinese authorities. Weak export data in China fueled chatter of stimulus measures which also caused Chinese equities to rise. The risk-on sentiment in global equities today translated to traders exiting long positions in gold. The yellow metal trended lower for the fourth day in a row but was buoyed yet again ahead of the $1,115 area. The $1,115 – $1,117 region has now held four times in the last two weeks and is becoming an increasingly important area of support. The 50 day moving average at $1,125.50 was the high of today and is short term resistance. Silver traded higher today but found offers that weighed on it ahead of psychological resistance at $15. It has put in a double bottom the last two trading days at $14.50 and is trading in a range without much conviction.
I am leaning bullish gold again, at least for the short term until the Fed meeting next week is over with and Yellen has given us the next signal. One of the main reasons is that we don’t seem to be breaking down and the dollar has slipped below 96 again. I still will change my mind if the dollar moves above 97 and stays there but right now my targets for the dollar are 95 and below long gold and 97 and above short gold (or hold off on purchases).
Here is where we are now with the dollar.
In the near future in this space I am going to be coming down hard on other gold dealers and their business practices. I find their tactics to bait and switch investors into their high priced collectible,/rare/proof/etc. coins rather disgusting. When you buy Stock A, you know what you are getting with Stock A. There could be other stocks within the same category as Stock A, but for the most part the group as a whole moves together. With gold there is the a certain segment of the industry that makes up probably 95% of the industry and they advertise on radio, TV and hire big name, mostly former celebrities or talk show hosts to promote them. I’ve written about this in Chapter 8 of my first book but the problem is most investors TRUST the spokesperson and just buys their metals blindly. Only later do they find out that the metals they bought aren’t worth what they thought they were and the price a dealer is willing to pay for those metals is 15% to 30% less than the market rate. I simply say; ENOUGH and it’s time to expose these gold dealers for the scam artists they are.
I am going to name names and one by one show what they sell and why they sell it. I’ll be doing it here under Current Thoughts so as not to spam my readers with information they already know is true because they have read my book or spoken with us, but it’s time to set the record straight.
One other note; you won’t find ANY gold dealer ANYWHERE telling you they think the price of gold is going to $1,000 or less. The reason AARP Magazine interviewed me is they found someone who sells gold and took the other side. That first interview was a year ago and I was right then about gold and I’m right now. Any bounces at present are dead cat bounces and for traders to trade. The writing is on the wall as to what will come next as my next book Illusions of Wealth will reveal. If you have not signed up for the announcement date of this next book, go to https://illusionsofwealth.com and at the bottom of that page you can sign up.
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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