Doug was interviewd by Brian Bain: in the interview they discussed the following
- $50,000 Seems outrageous but starts appearing saner in the context of John Exter’s inverse pyramid.
- Many things can trigger the unraveling, they all usually come back to Fed.
- Doug is confident Fed will not raise rates again this year.
- There will be a time when treasuries begin to crack, then gold and silver will begin to take off.
- When will $50,000 gold come?
- $50,000 seems outrageous but starts appearing saner in the context of John Exter’s inverse pyramid.
- John Exter has been called “the only honest central banker”
- He was a central banker in the 1970s and known for his critique of central bankers
- He claimed Fed was out of control at when it’s debt load was around $80B
- “Gold bugs” still see cracks in the future of the federal reserve system, John Exter saw these cracks back in the 1970s
- Congress has no clue as to saving money or budgeting
- Central Bankers accommodate Congress with artificially low rates
- John Exter’s Inverse Pyramid
- Upside down pyramid with gold at the bottom
- 2008-09 we had a mini-crash in the pyramid, but gold and silver also got hit
- Once this unraveling begins, even gold can get hit
- Many things can trigger the unraveling, they all usually come back to Fed
- The unraveling begins when bids disappear on risk assets, investors trying to liquidate assets are unable to
- In 1987 there were some assets that had no bids
- Fear sets in and causes people to panic (ex: 1987)
- Fed will do all they can to stem
- Doug is confident Fed will not raise rates again this year
- Fed will likely begin speaking of QE again because the strong dollar is really hurting things
- Gold and silver should bottom where they are short-term
- Gold and silver will collapse with everything else
- During the predicted unraveling cash and treasuries will do best
- TLT and TMF will shoot up
- The dollar will go over 100 and even 120
- Doug is confident in gold and silver (SLV) now more than ever
- Even so, he sees one more last leg down in gold and silver
- Gold should run up to 1400-1500 over summer 2018
- There will be a time when treasuries begin to crack, then gold and silver will begin to take off
- When to buy gold? When you begin to see treasuries crack
- Can’t have a dollar crash without other currencies crashing
- Doug recommends going half in gold now and half in during the crash coming in September/October 2018
- When will $50,000 gold come?
- If Fed raises rates down the road, when is the end game? When we hit 6% in interest rates
- Fed still has a lot of tools, can still lower rates and even go negative. The US cannot pay 6% interest on its debt
- The coming deflationary credit contraction could extend longer than people think
- He sees us easily reaching $5,000 gold
- For summer 2018, Doug sees stocks and gold/silver going higher
- For fall 2018, Doug will be looking to see if the Fed starts retreating and potentially mentioning QE again. This could be the beginning of a 2007-09 type crash.
- Doug looks to be long metals and miners by end of year
You can find the interview via the following links:
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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