The price of gold getting a slight boost this morning from a weaker dollar, but still unable to get over the $1,300 dollar level. Higher equities prices keeping investors interested in that market.
Many Wall Street traders are still looking for the price of spot gold to settle over the $1,300 dollar level before taking on a long position.
My technical gurus checking in today are claiming that if the price of spot gold can get over the $1,305 dollar level, according to their charts, there is no resistance until
the price reaches the $1,332 level.
But for now the gold market just sits and waits for some news that will get us out of this box. I believe the price of gold has built up a strong foundation and is real close to breaking out in a big way.
The Economy
According to a most recent survey, 78 percent of all Americans are living paycheck to paycheck.
Even 9 percent of the people earning six figures have difficulty making ends meet. And in the group earning over $100,000 dollars or more, 59 percent claimed they had debt.
Household borrowings have reached a record of almost 13 trillion dollars. Even higher than it was during our financial crisis. Eighteen percent of all workers have reduced their 401k contributions and or personal savings this year.
But all over the news you hear that the stock market is strong, there is little amount of inflation and the economy is growing.
What am I missing here?
We are a little over 30 days to a possible government shutdown if Congress can’t agree to raise the debt ceiling.
My question is, why take the easy way out and expand our debt instead of trying to reduce it. The reason – They can’t! They’re just not willing to address the ever-growing costs of entitlements.
The majority of all Federal tax dollars are spent on what they call “human services.” In the fiscal year 2016, which ended Sept 30th, the government took in almost 4 trillion dollars. Out of that 2.7 trillion (67 percent) went to entitlements. (Social Security, Medicare and Medicaid , Veteran Benefits and Unemployment). Fifteen percent went for national defense. Six percent more was the interest cost on government debt. If we just add up these figures that 88 percent of all tax dollars spent and that doesn’t leave much on the table.
And don’t yell at me for my next point – And everyone is asking for corporate and individual tax cuts?
Really?
The cost of a healthcare bill? No one can put their finger on what that will cost.
Are you getting the picture? It was never my intention to depress anyone, just to open everyone’s eyes to what a mess we are in, both individually and as a nation.
And those poor folks in Texas. No one knows how or when they will get their lives back together again. Who knows the cost of rebuilding. According to some experts, the cost to the Federal Government will be astronomical. Tax payers need to expect an increase not a decrease in taxes, as the government was in a mess before this disaster.
Unfortunately, I don’t have any answers. But one thing is certain. If we don’t address these problems in a very short order, tremendous cuts will have to be made to all entitlement programs, putting many Americans in financial ruins.
So if you are one of the fortunate ones that has money to invest, after absorbing all this information that you’ve read here today, what investment makes the most sense?
Let me help you…an investment in physical Gold or Silver.
Have a wonderful Monday.
Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice and cannot be attributable to Dillon Gage. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.