Gold and silver scores improved to -75 today with an uptick in the metals. The miners did break yesterday’s highs for a trade but then fell below those highs closing lower. There wasn’t an uptick in the GDX, NUGT or JNUG scores.
JNUG for example traded up to yesterday’s high of $4.13 three times before finally breaking through and then only managed to go two cents higher to $4.15. It then fell to $4.00 before breaking above for a fourth time where one could have jumped in for a trade. It went as high as $4.40 before closing at $4.05. After hours it is down to $4.00. The triangles are all still red for the metals. JDST is still green on the weekly.
This is a tough area to trade right now but use the highs from today to go long the miners and the lows to go long JDST.
The buying of physical metals slowed down a bit today. Many smart investors prefer to buy the dips rather than chase prices higher. This strategy has worked for the last year and a half. There will be more dips to come and I am still in the camp of gold breaking below $1,000 an ounce and dragging silver down with it. This is why I am offering my views on other ways to look for opportunity.
From the Trading Desk
The US Mint caught market participants off guard last week when they announced that silver eagles were sold out. This week they updated the situation by informing Authorized Purchasers that silver eagles will go back on sale, on an allocation basis, the week of November 17th. The allocation process means that each Authorized Purchaser will have a maximum amount of coins they are allowed to buy each week while the US Mint catches up on production. Demand is still strong, supply is constrained, and premiums will likely stay high for the foreseeable future. The US Mint may very well be on allocation through the rest of the year and into next year as well.
This is good news for the premiums on silver Eagles as they fell today down to $2.50 over spot plus the 1% commission from $3.25.
Chinese Panda Gold Coins Now for Sale
We are unveiling a new gold product soon, the Chinese Panda one ounce gold coin. These will only be sold in increments of 10 ounces or more and have a premium of 3.25% plus the 1% normal commission with free shipping.
New Website Coming
There will be a new website unveiled in the weeks ahead. It will include a better “Today’s Prices” page. This will be announced here and on the blog once it becomes active.
11-11-14 GLD CHART
11-11-14 SLV CHART
11-11-14 GDX CHART
11-11-14 JDST CHART
11-11-14 JNUG CHART
11-11-14 NUGT CHART
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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.
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.