Tom O’Brien, publisher of the Gold Report, chats with Barry

-- really have a few text questions that are left over from our tax segment did not give you one that I thought was particularly. Poignant. 978 asks can I write off my mileage if I work construction and drive to many different job sites here's the deal. When you're driving to that first job site if you're commuting let's say you're driving from Franklin Massachusetts to the city and it's a thirty mile drive. That drive is not tax deductible -- when you get to the job site in in the city. In the box says TFK I needed to -- the lol to pick up some supplies driving from. The city -- lol and back that will be tax deductible so here's the basic rules on deductible mileage. The trip from your home to the officer that your home to the initial job site -- -- workplace. Is not tax deductible your commute if you will is not tax deductible however. Anything after you get to the jobs and if you're have to travel around. That is in fact tax deductible and it's 55 and a half cents per mile as the deductible allowance that you're receipt. We've had a lot of economic data breaking so far today June what what is the stock market looking like after the opening bell. Still uneventful narrated Dow it's flat it's called 981 just doesn't want to reach that thirteen thousand mark again I look at that as a victory that the data was pretty bad -- you know you -- -- All the data that we've been getting it today you know you -- Shiller numbers that he would be durable goods order bat. Right so you look at that in the stock markets flatter out a little -- take it as a NASDAQ flat as India's flag you get the ten year treasury flat. Gold is the only thing that's up seven dollars and ten cents. And then oil is down 33 cents to one only 23 -- speaking of gold we've got the author of the gold report is name's Tom O'Brien Tom are you doing today. It could take Tom what's influencing the price of gold today we see it up seven dollars an -- -- kind of factors are moving today. You know what you have inside that -- and actually it is pretty cool when you just talking about the mileage rate OK when you look at that mileage -- you know it's 55 cents. Verses you know out of -- go back 2030 years ten years you're talking about ten to fifteen cents. So the correlation. Is absolutely get direct correlation. Between. The US dollar -- What we paid for things as we go forward you know. Back to the acceleration that would had a golden that the past ten years in eagle and three and 19100 right now. I'm not in the camp that political in nineteen it's -- 6000 I am in the camp. That right now would you have is that because there's so much money in the system. That you will see incrementally. Gold go higher. You know it's 1778. I don't think is the great talented running in the air and -- at this particular point yup the reason being. Is that the -- want to go higher up and you know. Golden is a good investment but I had to wait until gold somewhere around 151516. Wondered what that was going to be my question to you what's the next stop for gold 15100 announcer 2000 and outs. You know I'd look at it about 1550. Would be a much better value coming into -- the reason being is at right now. The way the market seems to set up and it coronation absolutely direct that the US dollar wants to go higher. If the dollar -- -- that affects all commodities it affects gold very quickly. And you know you'll get a pullback inside that metal market. But -- the -- at the in trade statistics the last time I looked. They were pricing in a fairly strong likelihood. Of a significant military conflict in the Middle East in other words Israel invading Iran to put an end to their nuclear pop power. Ambitions -- nuclear ambitions. What impact would an invasion Arab military conflict in the Middle East have on gold prices. I think initially it would have. Oh wickets spike. You know if -- if you I would -- when I say despite it was like under under the problem. They have to go through 400 dollars AS AP thing with the oil and I'd -- right into it -- to do you know if you look back at -- The first Iraqi walk yup that's exactly would happen you know despite go overnight. Right and the first day of the invasion it's Allopod below market somewhat pot in the gold market fell apart so I'd settle into that spike because what happened after that. Is that it kills demand everywhere you know you you'll get a couple. Fear factor is in the but that the longer term reality is that OK you know bottom line Beattie get back crushed before and I suspect that would be the same thing would happen. Some investors Warren Buffett included are anticipating. That interest rates are going to rise in. In Warren Buffett and in many -- come out and said that there's a bond market bubble that day you know this is a bad place to be investing your money because interest rates are going to go up go -- I mean they're talking about it issuing tenure -- not ten year treasuries but treasury bonds would negative rates of return right now in order dissuade people from safe investments. Would impact would rising interest rates have on the price of gold and all of a sudden. We've got interest rates on the ten year treasury five and 6% is that bullish or bearish for gold prices. That's -- big time because what happens is that if in fact that happens. That's gonna put strains under the US dollar up Tom and of course it would end up happening. Interest rate -- is that you know gold you know it's not paying interest. In the last in -- that argument has been made many times -- mean Buffett himself. Has made that I mean but it could take his portfolio against gold gold is basically yelled from the sport for about about a 1000% so. Tonight 774 -- ask this question Tom. Does your -- see danger with gold ETFs because of short supply. If there -- ever major delivery call also how does -- high profit patient factory in boy talk about a technical question Tom take it. That's a good one OK I'm not in the camp buried at the when you look inside the is that GO LD which -- the -- tracked gold trust. What people worry about it said will the Paper get delivered you know every time I look at that might take is that they -- CF. It's fine there's no you know. There -- type application okay. You know could be a problem. If and it could do it recently -- really bad -- -- is folks is that they can take it easy. Money that you have. And they can turn around and take that money and it's not segregated. And if that firm goes down like MF global went down it's a problem I don't see it -- -- ended Shelby because that's he's talking about State Street at the back office. And there is problem. Now right now from your perspective Tom Murray it should we be trading gold and try to make money on the seven dollar moves or do you buy gold today. And you buy it with the intention of holding it for like real estate ten years or longer. Yeah I hit it -- -- insurance policy very that would gold is you know if I -- get to that question differently you know when it was at 30500. You know it's 17100 I expected next couple years. You're gonna see from 1515 about twenty to 2300 you know and and that's not bad but that's certainly not like Bono once -- 300 to 17100. All right so 1550 is your strike price and gold right -- yes all right that's Tom O'Brien ladies and gentlemen he's from the gold report. Joining us today on the financial exchange thanks as always Tom great are great have a -- on all right Tom O'Brien publisher of the gold report.