The value of gold and silver are on the rise, but this spells trouble for the declining dollar index which could push as low as 66 points, according to Chris Zwermann, strategist from Zwermann Financial.
Gold made new highs Wednesday and “looks like it’s going further up,” he told CNBC.
“The question is what really does gold tell us,” he said, adding that gold’s strength is “a sign that the dollar is going to weaken earlier or later in the next few days already, and the stock markets turn around again.”
The dollar is on a downward trend, currently resting at about 76 points, but “the dollar so far didn’t manage to come out of this downtrend,” Zwermann said, adding that the dollar doesn’t have the strength to turn around at the moment, pushing the index target as low as 66 points.
While gold strength spells trouble for the US dollar, the silver market is likely to rise with gold pushing the spot silver value to more than $20 per ounce, he said.
Gold made new highs Wednesday and “looks like it’s going further up,” he told CNBC. …
Here’s another tip:
“You don’t want to chase the railroads or transportation stocks at this point—rather, we want to run where Buffett’s going than where he’s been,” Altucher told CNBC. Altucher said Buffett’s latest new position is Becton Dickinson and he also added to Johnson & Johnson. “Buffett is making a good long-term bet on the health care industry with the aging baby boomers – cnbc
All precious metals are increasing in value. The gold I bought years ago when it was low has turned out to be a fantastic investment. I’m not selling yet. Gold is still going up. At this time, I recommend buying some palladium. It is cheaper than gold and has great potential based on its uses in alternative energy technologies. You want to buy low and sell high, and the price of palladium is currently low, but it has been much higher in the past. The 5 year high is $579/oz. Palladium is currently around $329 and has been climbing all year.