Many of you who invest in stocks and bonds have maintained your wealth the last 15 years because stocks and bonds have done quite well over that time. But what has also done well is the U.S. Dollar has gained 62.37% in purchasing power during the same timeframe. The U.S. dollar up until September of 2022 had been king of the world and life was good. But that is changing.
Already since September of 2022 the dollar has lost 9.39% of its purchasing power with the DXY (Dollar Index) hovering around 104 presently. To compensate for that drop in dollar purchasing power, banks may now pay you a 5% interest rate on your savings. The result is a -5% loss in purchasing power. You are losing wealth and may not even know it while at the same time everything is costing more. Below 100 on the DXY and it’s more purchasing power loss for you, most likely -10% or more over the next year based on the data I present below.. (See Dollar Chart Below)
The price of gold averaged $1,682.97 per ounce in September of 2022 and today is averaging $1816.13 or a 7.91% growth and as high as 15.70% at gold’s high for the month of $1947.20. (See Gold Chart Below)
Moving forward we have many signals that a bottom is in for gold and silver.
Daily Sentiment Index (DSI) a tool I use with over a 40 year track record of accuracy, shows the dollar at a reading of 88, the high for the week. Anytime DSI gets to 90’s or above it is time to look the other direction.
We also have the Yen, which historically has traded opposite of gold hit single digits DSI of 9 and has since bounced to 22 and thus gold and silver have bounced with it.
From my supplier, the largest in the U.S. on what’s going on with metals: “July was slow for us. In August we saw a jump in demand when the prices dipped below $1900 and $24.00 but with the recent increases it’s slowed a bit. August was much better than July overall. American Silver Eagle demand has had a notable increase and premiums are starting to jump back up. Good sign as typically the other sovereign material falls in line.”
These trends are just getting started which is bullish for gold and silver.
We also have a Federal Reserve that is on the cusp of lowering interest rates again. Why? Because DSI for treasuries is bouncing and the Federal Reserve Balance sheet or SOMA 2 weeks ago added to the present deficit of over $7 trillion (no one talks about this on CNBC), causing volatility in the stock market.
We also have the latest Commitment of Traders (COT) data showing that smart money, the banks, are getting net long as hedge funds (dumb money) are getting net short.
This is about as close to the perfect storm we have all been waiting patiently for since my last post about 3.4 years ago. My last post was simply a free copy of my book Buy Gold and Silver Safely which is really all you need to know about buying gold and silver and the dollar.
The question you have to answer, is what will it take for you to insure your bank cash and CD’s at this point? Will it be more bank failures? Don’t worry, they are coming. The last group of bank failures including Silicon Valley Bank the government didn’t hesitate to bail out. They have enough money they can print to bail out a failure like Silicon Valley Bank and others or the billions sent to Ukraine but not enough to send more than $700 to the ones devastated by the fires in Maui. It shows you how government will protect themselves and those connected to it more than the little guy who has money in the bank and assumes it is safe from destruction of the dollar. It’s not. And if your bank has issues and is a smaller bank, no one will help you except for the small amount of FDIC insurance available, but gold will protect you now.
You can make a move now into gold and not lose 10% or more over the next year like you have lost the last year. Or you can sit on your hands and hope for the best. It’s been a good ride for many. It’s not going to last and the data tells us that right now that gold and silver are set to take off. They won’t look back to these prices again, and the good news is, the premiums have come down to the lowest they have been in 3.5 years. That won’t last either. Notice I only mention -10% loss of purchasing power the next year. If we get back down to 72 again on the Dollar Index, that’s over a 30% loss. No one is there to bail out the dollar and the Fed balance sheet will do nothing but grow exponentially as the buyer of last resort.
Gold Is Insurance
95% of what I recommend you purchase for insurance in gold and silver that will keep pace with the dollar’s demise are found in 3 products that are the lowest cost to spot (4 if you have an IRA).
For gold it is the one ounce gold bars .9999 pure carded and assayed.
For silver liquidity the one ounce .999 pure silver Buffalo’s and for best price the 100 ounce .999 pure silver bars.
My philosophy is simple, why pay more?
For IRA’s the 100 ounce silver bars are good but if large enough, you can even get a better price with the 1000 ounce silver bars.
Those I follow closely say that silver will go to $160 over the next decade (or sooner) and gold to over $10,000. I do like silver over gold and can share with you my reasoning.
Please share this article with those you know and make sure they too have the insurance needed to prepare for what comes next. They and you won’t regret it. History will show now is the time to go all in.
Call us at 888-604-6534 for a quote or to discuss your situation. I only take orders over the phone but if you prefer to discuss things first via email, contact me at firstname.lastname@example.org
The Best Is Yet To Come!
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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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.