With the Fed coming out today giving the markets and gold holders what they want to hear, a .25 decrease in rates, we should see a continuation of gold moving higher for a bit. Maybe a week or so.
Markets should follow the Fed’s lead higher too, even tough all this news should be priced into the current market. We’ll see if we get any selling.
I would like to see gold break to the $1,460’s and maybe take a shot at $1,480’s but on this leg, not sure it gets there.
Either way, you should be long metals with a 50% allocation into gold and we’ll look to buy the dip on any pullbacks where I will eventually give my “all in” signal.
For silver, I gave a bottom call at 14.50 and it moved up $2 from there, or 13.8%. Nice little move for silver if you followed my advice.
We do recommend silver for a longer term hold and any dips should be bought there as well.
For those invested in the markets, I am busy taking my Illusions of Wealth book and carving out the investment section and turning it into an updated new book called “Profit In Up Or Down Markets.”
In doing my research for the book, I will be writing my next article about what I see is a coming recession. Not right away mind you, but the data shows its on the horizon.
I do think one can profit in up or down markets, and am not as concerned about a recession coming as I can profit from it. However, most of you out there either can’t or don’t know how to trade a market that is falling.
Most of you buy and hold as that is what your financial advisor tells you to do. A recession cost investors 37% in 2009. The next recession will most likely be a double digit decline as well.
We do know that President Trump will do all he can to keep the stock market pumped up, even yelling at the Fed that they should have done a .50 decrease in rates.
The facts are however, the Fed should not have done any rate decrease. There were two disinters that I will be contacting to congratulate them.
The rest are clueless. You don’t lower rates with this strong of an economy and with stock markets hitting record highs. Just stupid. Less ammo for when the Fed really does need to cut rates.
At some point, they will most likely go negative on rates now when they find they are at point zero.
Enjoy the ride in metals and markets for now. Buy the dips in metals and sit on them for a few years. You won’t regret it.
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.