Summary
We hit the targets from April Article of $1,300 to $1,400 gold.
Dollar is moving back up which will put pressure on gold, silver and mining stocks.
My secret indicator tells the real story about gold.
Gold dealers new tactics to rip-off investors in silver.
The one question to ask every gold dealer.
In my last article written April 17th on Seeking Alpha, Enjoy The Gold Bull While You Can, I explained I was bullish on silver over $16 and put up a chart that showed when gold was $1,233 that resistance was in the $1,300 to $1,400 range. Gold hit a closing high of $1,366.25 after moving above $1,370 intraday on July 6th. I also explained that if the dollar, which at the time was 94.68, fell below 94 it would be bullish for gold. It hit a low of 91.91 on May 3rd but has since bounced higher. Please take a look at those charts for reference.
As gold moved into its range, silver moved up into a higher resistance than the range I gave, which if you look at the charts showed a double top additional resistance right where silver peaked at the 21.50 range. Anyone who reads charts knows that if you break one resistance you look for the next resistance on the charts and become cautious as you approach that level. You can see that double top on the same chart I used 3 months ago.
This article continues exclusively on Seeking Alpha here, including my secret indicator:
http://seekingalpha.com/article/3989504-gold-miners-decline-coming-caution-buying-silver-coins
The graph below explains what gold dealers are doing to rip clients off by selling 1.5 ounce silver coins at high commissions. I explain more in the Seeking Alpha article.
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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.