Recently I had someone tell me that I am biased in favor of gold and silver (meaning always bullish) because I sell gold and silver. This was rather presumptuous on their behalf which is why I copied the articles below to show what I have actually written over the past five months about the gold and silver markets.
Sept. 16 Calling the Fed Taper Bluff and What Gold Might Do Next
Aug. 29; Sticking With Stronger Dollar and Weaker Gold Through End of Yearhttp://bit.ly/15AYcRs
July 22; Nice Run Up In Gold and Silver Prices – Expect a Pullbackhttp://bit.ly/12dw1ca
June 26; Is This the Bottom for Gold and Silver? http://bit.ly/14bkOpZ
April 26; Gold And Silver Dead Cat Bounce And More Carnage To Come Or All In? http://bit.ly/ZTixuq
Does it mean I’m perfect? No. But there aren’t any other brokers who sell gold and silver that are calling the precious metals markets as well as I am. I have submitted articles to some of their sites, but they won’t print them because they don’t fall into the “inflation” or “end of the dollar” scenario they like to espouse. It seems many like to go on the attack against those who believe in gold as an asset class for one’s portfolio, and the do so with vengeance. They think that those who promote gold only invest in gold and mock them without any justification.
Do Financial Advisors Ever Caution You Against Buying Stocks?
But what about financial advisors in general? Do you ever hear of a financial advisor who sells stocks caution investors about a frothy stock market by comparison? As a group, they sure didn’t caution investors leading to the 2008 Financial Crisis. I have called the short term quite well, and have even been telling clients to dollar cost average into their allocation for precious metals in about every article since I turned dollar bullish in 2011. This advice has saved my clients thousands of dollars.
I have written articles on stocks as well. While I am early with using the term “bubble” in describing the stock market, who is out there cautioning investors to dollar cost average out of an asset class that has been simply fueled by economic data propped up by Federal Reserve interference in the free markets? There will be hell to pay for this, just as there was in 2007-2009. But here’s the question to ask; if you received advice in 2006 to start getting out of the stock market, were you happy to receive it and act upon it in 2007 – 2009? You could of course got back in at the lows and rode the market back up. But what makes people think this time it’s different and the Bernanke Fed propping up the markets by keeping rates low to try and stimulate the economy will work? How come it failed last time with a loud thud with the Greenspan Fed induced bubble?
I am still recommending to dollar cost average into a position of precious metals until the end of the year because of what I see as end of year tax loss selling by the Hedge Funds, Mutual Funds and professionals, as well as market makers taking advantage of one more test of the lows after the October debt ceiling debate subsides. I am also still dollar bullish. The upside for gold in the short term, is the debate over the raising the ceiling on the National Debt, where our country is scheduled to run out of money on Oct. 17th, won’t be an easy one for Congress, especially with Obamacare involved. So we might see a short term pop in gold and silver as that deadline approaches. Congress historically comes together and does what they always do and raises the debt ceiling. It’s something to watch closely and I will be writing about it. Silver under $22 is a pretty good buy though, whether we go down to the $17 range or not. When you look at the prices you bought at, and silver is at $40 or above, does a purchase price of $22 or $17 make that much of a difference? If you answer yes, dollar cost average into a position and “hope” the price falls further. If you answer no, just buy.
Over time, everything is always sorted out to where gold and silver maintain their purchasing power and this is why the insurance they provide is needed to help buoy your portfolio, just in case the bullish case for stocks is missed by the experts again.
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.