Count Out Trump at Your Peril
What Were Democrats Thinking With Their Latest Decision on 2024?
Adam Schiff Happily Funds Terrorizing Others
The Pushback Against Gender Ideology Proves Conservatives Can Win The Culture War
Florida Should Adopt Constitutional Carry Because It’s Mainstream
America's #1 Geo-Political Foe...China
The Ballooning Chinese Racial Hubris
To Save America, Trump In 2024
A Reply to Eric Metaxas’ “Letter to the American Church”
Why are Taxpayer-Funded Tourism Agencies Promoting Radical LGBTQ+ and Progressive Causes?
The Chinese Spy Balloon
China Predicts War in 2027, Might Want to Prepare
Americans Are Not Thrilled About a Trump-Biden 2024 Ticket After U.S. Faced Chaos...
NYC Mayor Spends Night On Floor of Migrant Shelter During Coldest Night of...
U.S. Intel Claims Chinese Spy Balloons Flew Over the U.S. Several Times But...

Gold Lower To End Week

The opinions expressed by columnists are their own and do not necessarily represent the views of

Unless something very startling happened late in the trading day, gold is on track to post another down week. 

In early market action gold was bouncing off its lows, up $0.22 to $1,696.81, and silver was down $0.05 to $32.49, raising the silver/gold ratio to 52.2. 

Commodities other than gold and silver were enjoying weakly positive trading with crude oil, platinum, palladium and copper all trading higher as the euro gained on the dollar in currency markets. 

Most analysts are attributing the movement in gold prices to a lack of progress in the talks centered around the fiscal curb, the latest fabricated financial media crisis.  Certainly there will be real market effects if sequestration kicks in, but the greater effect will be psychological.  When the market has convinced itself something bad is going to happen on a certain day it almost inevitably becomes a self-fulling prophecy. 

Overall the economic news remains positive with manufacturing picking up in China and demand for industrial commodities showing some improvement.  Equity markets in the U.S. and Europe remain near their highs for the year, with both the Dow and S&P higher on the month, while corporate balance sheets remain largely healthy. 

I had a very different attitude toward the housing market in 2005.  Everything I saw said valuations were unsustainable and I put most of the real estate we owned up for sale.  At the time people told me I was out of touch with the market reality.  Instead of gloom and doom the mood was one of unbridled optimism. 

During the subsequent market crash, when layoffs were happening by the hundreds of thousands a month and the financial media was in a doomsday panic, I was buying equities all the way to the bottom. 

It’s good to keep in mind that what may be big news in financial and political circles likely isn’t going to change a well-structured, long-term investment strategy.  The financial and political media have an interest in keeping readers stirred up but panic and fear are your biggest enemies in investing and that’s particularly true in precious metals. 

When the market gives you lower prices on gold and silver, disregard the media panic and stick to your plan. 

Chris Poindexter, Senior Writer, National Gold Group, Inc

Join the conversation as a VIP Member


Trending on Townhall Video