John Exter’s Pyramid can be used to determine what investments are safe when markets are not liquid.
The national debt math does not add up and eventually the debt market will suffer repercussions.
Gold and silver are insurance when markets get long in the tooth and near correction.
Gold and silver stocks offer leverage to the price of gold and silver, and are a good alternative to other stock sectors during a recession.
Doug discusses leveraged ETFs and how trading them on a short-term outlook can provide returns that buy and hold strategies do not.
I met with Doug Eberhardt, owner of Illusions of Wealth and Buy Gold and Silver Safely, to discuss his thoughts on the following topics:
- Why the national debt math does not add up.
- Consumer spending trends (are they up or down, and what does that mean).
- How the recent Fed announcement on reducing the number of interest rate hikes, and how *potentially* moving back into an easing stance in coming years may affect the markets.
- The advantages and disadvantages of leveraged ETFs, who may want to trade them, and why.
- Gold’s role in preserving wealth and as an inflation hedge Where the gold price is heading.
- How Basel III regulations will affect the gold price and how countries will hold it.
- Why miners have more upside in the future (leverage to commodity price) than just owning the metal outright.
- We discuss a few miners that both he and I like.
- John Exter’s Inverse Pyramid and where gold, silver, stocks, bonds, and derivatives all sit within that framework.
- We discuss what a recession may have in store for those investments, particularly the ones on top.
You can find Doug’s two websites here:
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.