Categories: Commodities and GoldGoldSilver

Gold and Silver Investments are Breaking Out

Brian Giesen

What do you get when the dollar is getting weaker due to the growing unlikelihood of a Fed rate hike in 2015?

You get a golden breakout.

This week, we saw a dramatic rally in gold, silver and gold mining stocks. In the case of gold bullion prices, the chart here of the SPDR Gold Trust (GLD) shows the strong move back above the technically and psychologically significant 200-day moving average.

We saw the same lift in silver, as displayed in the chart below of the iShares Silver Trust (SLV). The benchmark silver exchange-traded fund (ETF) now also trades above its 200-day moving average, a bullish sign for the precious metal going forward.

While it remains to be seen if the flow going into gold is “new money,” or whether it is the result of a lot of short positions unwinding, I suspect it’s a combination of both, and I also think that’s why gold and silver are likely to continue going higher from here.

This week, gold also received a vote of confidence from famed investor Paul Singer of Elliott Management. The billionaire told attendees at an investment conference in Israel, “In a world where the value of paper money is affirmatively aimed at being degraded by central bank policy, it’s kind of surprising to me that gold can’t catch a bid.” Singer added, “I like gold. I believe it’s under-owned. It should be a part of every investment portfolio, maybe five to ten percent.”

This week, the Fabian Gold Plan confirmed Singer’s precious metal intuitions, as we received our first new Gold Plan buy signal in quite some time.

Exclusive Rising Commodity Inflation Will Pressure Fed to Keep Rate Cuts on Hold

The Fabian Gold Plan is designed to get investors into gold and gold mining stocks when things are just breaking out, and that’s exactly what happened this week.

If you want details on how you can get in on this golden breakout, including what specific ETFs we are recommending right now, then check out my Successful ETF Investing newsletter today!

Twain on Facts

“Get your facts first, then you can distort them as you please.”

— Mark Twain

Although Twain’s humorous take on the tendency for humans to distort facts will likely make you smile, when it comes to your investments, looking facts straight in the eye, free of distortion, is a much better approach.

Wisdom about money, investing and life can be found anywhere. If you have a good quote you’d like me to share with your fellow readers, send it to me, along with any comments, questions and suggestions you have about my audio podcast, newsletters, seminars or anything else. Ask Doug.

In case you missed it, I encourage you to read my e-letter column from last week on Eagle Daily Investor about why ETFs are a better investment than mutual funds. I also invite you to comment in the space provided below my commentary.

All the best,

Doug Fabian

Doug Fabian is the Editor of Weekly ETF Report, a free weekly e-newsletter, and the newsletter Successful ETF Investing. He’s also the host of the syndicated radio show, “Doug Fabian’s Wealth Strategies.” Doug also edits the fast-paced trading service ETF Trader’s Edge, for investors who want to take their profits to the next level. Taking over the reins from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert’s Investment Digest. Doug became a member of the “SmartMoney 30” in 1999 — a listing of the most influential individuals in the mutual fund industry. In the feature, SmartMoney magazine exclaims that Doug is the best-known “trend follower” among the $56 billion (and growing) group of financial advisors. In 2001, Doug wrote “Maverick Investing,” published by McGraw-Hill. He also regularly appears at seminars around the country, stands out on the pages of the largest newspapers (The Wall Street Journal, The Los Angeles Times, and The New York Times), and speaks on national television (CNBC, Fox News, and Bloomberg Forum). For more than 35 years, Successful ETF Investing (formerly the Telephone Switch Newsletter and Successful Investing) has produced double-digit percentage annual gains. Doug has become known for his expert knowledge and timely use of innovative tools, such as exchange-traded funds, bear funds, and enhanced-index funds to profit in any market climate. For more information about Doug’s services, go to http://www.fabian.com/