I am spending the next month in seclusion except for gold and silver business, and writing my next book, “Illusions of Wealth” which the timing for couldn’t be better.
I will still post articles now and then relevant to the gold and silver markets, but only when I feel necessary to comment. One who invests in gold and silver, need only contribute to their stated allocation and go about their daily business as there is no need to follow the markets day in and day out if you’re not going to trade your position. When I write articles, they are not typically going to be a day to day analysis but rather a macro analysis for swing traders and buy and hold investors who allocate into a position through dollar cost averaging. Everything I read, and I read a ton, helps me formulate my thoughts as to what I write in my articles and what will go into the new book which will predict why gold and silver prices will move much higher in the years ahead.
My call for the market bottom was a pretty good one. We have gone up in price for both gold and silver since then. See the article I wrote late June; Is This the Bottom for Gold and Silver? Nouriel Roubini at the time I wrote that was calling for gold to go to $1,000. But remember, he also said when gold was $1,000 a few years ago, that it would never go to $2,000. It his about $1,920. Not too shabby. It will get there again.
Where Are Gold and Silver Prices Going Over the Short Term?
Since we have had a nice run up in price off the under $1,150 lows for gold, and have now broken through $1,300, expect another test of the lows here at some point. Same goes with silver which has had an even better rebound off the lows. There has been some short covering and other news that has driven the prices higher, including a lower dollar, but don’t think for a moment that Europe and Japan has fixed their issues. They haven’t.
The dollar should rebound here and put some short term pressure on the gold and silver bulls. Bernanke, as predicted, couldn’t let the tapering comment go for too long before he had to back track and this helped the gold and silver prices move higher. The Fed has no choice but to continue doing what they are doing. But I still believe the attention will move from Trayvon Martin, erm, I mean U.S. dollar issues to Europe in the weeks ahead and more buying opportunities will present themselves.
Spot prices at the time of this writing are $1,337.30 for gold and $20.61 for silver. Dollar Index is sitting at 82.23.
If we do get the pullback, either now, or off slightly higher prices, this may be one of the last chances to buy gold and silver at these prices. Come September, I plan on being more bullish, even though we may get some end of year selling as the bears try and knock gold off it’s now 12 year stellar run. Don’t let anyone convince you the bull market in precious metals is over. It’s not.
Related posts
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.