Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
The Fed has created unprecedented amounts of new money, and have still hinted at even MORE quantitative easing. And many other central banks around the world have had similar policy. Why SHOULDN'T metals continue higher?
The Fed has created unprecedented amounts of new money, and have still hinted at even MORE quantitative easing. And many other central banks around the world have had similar policy. Why SHOULDN'T metals continue higher?
The bear case on the precious metals would be that with the economy getting better, interest rates will rise and there will be less fear, which are bearish for the PMs. I think there is at least some truth to this. I think the economy is improving.
Also, the technicals on the PMs are breaking down.
The Fed has created unprecedented amounts of new money, and have still hinted at even MORE quantitative easing. And many other central banks around the world have had similar policy. Why SHOULDN'T metals continue higher?
The bear case on the precious metals would be that with the economy getting better, interest rates will rise and there will be less fear, which are bearish for the PMs. I think there is at least some truth to this. I think the economy is improving.
Also, the technicals on the PMs are breaking down.
You know damn well the Fed has no ability to bring rates up right now.
They have to extinguish about a trillion dollars to even make a dent in the Fed Funds rate.
The Fed has created unprecedented amounts of new money, and have still hinted at even MORE quantitative easing. And many other central banks around the world have had similar policy. Why SHOULDN'T metals continue higher?
The bear case on the precious metals would be that with the economy getting better, interest rates will rise and there will be less fear, which are bearish for the PMs. I think there is at least some truth to this. I think the economy is improving.
Also, the technicals on the PMs are breaking down.
You know damn well the Fed has no ability to bring rates up right now.
They have to extinguish about a trillion dollars to even make a dent in the Fed Funds rate.
The bear case on the precious metals would be that with the economy getting better, interest rates will rise and there will be less fear, which are bearish for the PMs. I think there is at least some truth to this. I think the economy is improving.
Also, the technicals on the PMs are breaking down.
You know damn well the Fed has no ability to bring rates up right now.
They have to extinguish about a trillion dollars to even make a dent in the Fed Funds rate.
They absolutely do. They could announce any number of steps short of raising rates as well. This is almost certain as central banks elsewhere are working on tightening. China has been doing so for some time.
Any move to tighten credit by the Fed will cause gold to tumble. And it is almost a certainty they will.
[
The caveat is that when the Fed tightened in the last cycle from 1% to 5.25%, gold doubled.
However, gold wasn't $1400 either.
At some point, tight interest rates will ultimately kill the precious metals bull market. I imagine that when it is all said and done, gold will fall by 70%+ and silver more so from their peaks.
The bear case on the precious metals would be that with the economy getting better, interest rates will rise and there will be less fear, which are bearish for the PMs. I think there is at least some truth to this. I think the economy is improving.
Also, the technicals on the PMs are breaking down.
You know damn well the Fed has no ability to bring rates up right now.
They have to extinguish about a trillion dollars to even make a dent in the Fed Funds rate.
They absolutely do. They could announce any number of steps short of raising rates as well. This is almost certain as central banks elsewhere are working on tightening. China has been doing so for some time.
Any move to tighten credit by the Fed will cause gold to tumble. And it is almost a certainty they will.
You know damn well the Fed has no ability to bring rates up right now.
They have to extinguish about a trillion dollars to even make a dent in the Fed Funds rate.
They absolutely do. They could announce any number of steps short of raising rates as well. This is almost certain as central banks elsewhere are working on tightening. China has been doing so for some time.
Any move to tighten credit by the Fed will cause gold to tumble. And it is almost a certainty they will.
What policy tool does the Fed have to raise the Fed Funds rate with any significance? Considering they'd have to sell about a trillion dollars worth of assets to drain enough bank reserves to bring the fed funds rate up from where it's at, which they obviously can not do right now, what else do they really have at their disposal to raise the rate?
The answer to that question is NOTHING. And that's why metals continue higher.
Bernanke has no power over long term rates, which have been rising both here and abroad.
Most of the rest of what you write is crap, mainly repeating things hawked by gold sellers.
You are the one repeating crap you hear on CNBC. For 2 years now their old bald head experts have been saying interest rates will rise & the Fed will let them rise. They were wrong & rates have been going down. You do realize the Fed has 2 policy goals for which it was created. They are in conflict, one is to print money & lower rates until we get unemployment to 5% which is full employment. The other is to keep the dollar strong. Over the past 40 years since the dollar came off the gold standard, necessary nonrenewable commodities have risen 8% per year against the US dollar. I see no reason for Fed to not at least maintain that level of inflation. I believe they will increase the inflation going foreword to split the difference in their 2 goals. They will create just enough inflation to keep unemployment heading down & keep the dollar in slow decline. That mean above 8% per year in nonrenewable commodities likely 12% annual inflation until 2013.
You are the one who is repeating crap & have been repeating crap all year. The only bubble is the US dollar. Google define market bubble. You will see that it describes US dollar, unfunded mandates & bonds exactly. You are a victim of group think. We just witnessed Republicans & Democrats extend entitlement spending & tax cuts. The increased US government bond sales has driven up bonds, not the lack of the Feds bond purchases. The fed will step up bond purchases to meet the increased demand shortly.
Gold price 12/14/10-$1396
Gold price 1/6/11-1358.
This masks the trend in gold prices, which is down. Gold has been down the last 3 sessions. This will continue.
Hope you sank your life savings in the metal!
Generally bull markets end when monetary conditions are tight, not loose at the beginning of a tightening. Maybe it's different this time, I don't know. I am short silver here for a trade. But this isn't what tops usually look like.
Generally bull markets end when monetary conditions are tight, not loose at the beginning of a tightening. Maybe it's different this time, I don't know. I am short silver here for a trade. But this isn't what tops usually look like.
You know I agree, but thanks to generations of SUPPLY SIDE policies these are no longer normal times.
We keep pushing the supply side string and wondering why it isn't working.
Generally bull markets end when monetary conditions are tight, not loose at the beginning of a tightening. Maybe it's different this time, I don't know. I am short silver here for a trade. But this isn't what tops usually look like.
You know I agree, but thanks to generations of SUPPLY SIDE policies these are no longer normal times.
We keep pushing the supply side string and wondering why it isn't working.
Are you atill on this? Is there some kind of drug you can take that will restore your sense of reality? Do you even understand what you are talking about, or is "supply side" some kind of code for Republicanism? And how has Keynesian stimulus the last 2+ years worked out for you?
You know I agree, but thanks to generations of SUPPLY SIDE policies these are no longer normal times.
We keep pushing the supply side string and wondering why it isn't working.
Are you atill on this? Is there some kind of drug you can take that will restore your sense of reality? Do you even understand what you are talking about, or is "supply side" some kind of code for Republicanism? And how has Keynesian stimulus the last 2+ years worked out for you?
Well I can see that you object to my POV, but your arguments against it aren't very convincing.
Try harder.
The question are:
Timing?
Locking in profits?
Letting profits run?
I agree that many other shoes will drop but domestic shoes will drive the market down while foreign shoes will drive the US market up. I will stick to leap straddles until something better comes along.
Finished doing that in 1992 so that doesn't work for me but you will be amazed at how rich you become when you get out of debt.I decided working the mortgage down was my best choice.
