There are some strange happenings with gold and silver today. Typically when we get news of a worse than expected unemployment report, gold and silver will receive a jump up in price. In fact we did get a jump in the gold price at the opening as seen in the following chart.
But what happened to the price after the initial reaction to the jobs report? Selling pressure took over driving the price down as seen in the following Kitco.com chart showing the “gold price change due to predominant sellers.”
This decline in price was occurring despite the fact that the dollar index was declining, 80 cents yesterday and almost 70 cents today.
Yet at the same time the price of gold and silver were falling, other commodities, besides oil, were rising in price as seen with platinum and palladium below.
In fact, we have seen the price of gold fall in most currencies over the past month as gold has struggled to break out to new highs.
Do gold and silver investors simply forget as Paul Harvey used to say….”The rest of the story”….???
- S&P, Moody’s Warn On U.S. Credit Rating
- Double dip in housing is almost here
- Commercial real estate loan delinquencies are rising with more problems ahead
- Government spending is still what’s propping up GDP
- Banks have more sub-investment grade derivatives than at the height of the financial crisis
- Manufacturing recovery dies in terms of unemployment
- The American Recovery and Reinvestment Act (more stimulus) is only a temporary solution
- U.S. States continue to face large budget gaps
- Despite seasonal job growth, future employment looks dim
- Pension plans are underfunded
- Medicare is gaining 7,000 new 65 year old baby boomers a day
Any dips in price of gold and silver should be welcomed as an opportunity to dollar cost average into a position. Unless of course you believe printing presses and quantitative easing are real long term solutions for the economy. Call Buy Gold And Silver Safely and speak to a representative today about buying gold and silver bullion at just 1% above dealer cost by dialing 888-604-6534.
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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