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Posts Tagged ‘QE3’

The Dow Hits An All-Time High! Translation: A Bubble Is Always Biggest Right Before It Bursts

March 6, 2013 Comments off

theeconomiccollapseblog.com

The Dow Hits An All-Time High! Translation: A Bubble Is Always Biggest Right Before It Bursts - Photo by KazekiReckless money printing by Federal Reserve Chairman Ben Bernanke has pumped up the Dow to a brand new all-time high.  So what comes next?  Will the Dow go even higher?  Hopefully it will.  In fact, it would be great if the Dow was able to hit 15,000 before it finally came crashing down.  That would give all of us some more time to prepare for the nightmarish economic crisis that is rapidly approaching.  As you will see below, the U.S. economy is in far, far worse shape than it was the last time the Dow reached a record high back in 2007.  In addition, all of the long-term trends that are ripping our economy to shreds just continue to get even worse and our debt just continues to explode.  Unfortunately, the Dow has become completely divorced from economic reality in recent years because of Fed manipulation.  All of this funny money that the Federal Reserve has been cranking out has made the wealthy even wealthier, but this bubble will not last for too much longer.  What goes up must come down.  And remember, a bubble is always biggest right before it bursts.

Fortunately, it looks like an increasing number of people out there are starting to recognize that the primary reason why stocks have been going up is because of Read more…

Buy Gold, But Don’t Store It In The US Because ‘The Fed Will Take It Away From You One Day’

September 18, 2012 Comments off

businessinsider

Today’s AM fix was USD 1,767.25, EUR 1,349.36 and GBP 1,089.42 per ounce.
Friday’s AM fix was USD 1,772.50, EUR 1,359.70 and GBP 1,093.53 per ounce.

Silver is trading at $34.52/oz, €26.44/oz and £21.36/oz. Platinum is trading at $1,699.00/oz, palladium at $685.50/oz and rhodium at $1,050/oz.

Gold rose $5.30 or 0.3% in New York and closed at $1,771.60. Silver climbed to $34.91 then dropped before bouncing back higher, and finished with a loss of 0.06%. Gold was up 2.02% for the week and silver another 3% for the week.

Gold is slightly weaker today but hovering near a 7 month high, as the US Fed’s announcement of QE3 has led to some investors diversifying into bullion as a hedge against inflation risk.

The yellow metal rose as high as $1,777.51 on Friday, a high not seen since February 2012 when it hit this year’s peak.  Last September 2011, it reached a nominal high of nearly $1,920/oz.

QE3 will allow the Fed to print dollars to buy Read more…

Categories: GOLD, GOVERNMENT Tags: , ,

Silver at four-month high amid QE3 hopes

September 3, 2012 Comments off

Financial Times

Silver price

Silver prices touched their highest level in more than four months on Monday as the prospect of a fresh bout of quantitative easing from the US Federal Reserve rekindled interest in the precious metal.

Investors have largely shunned silver this year after being burnt by a year of wild price swings that saw it touch a 30-year high in April 2011 before plunging nearly 35 per cent in a fortnight.

But silver, whose primary use is industrial despite a recent surge in investor demand, has jumped 15.8 per cent in price in the past three weeks and on Monday peaked at $32.20 a troy ounce.

The gains have outpaced those of gold,

which has risen just 5.2 per cent over the same period.

The “mint ratio” between the two precious metals, a favorite trade of hedge funds and other investors, has moved 9 per cent in silver’s favour since mid-August – the first time silver has outperformed Read more…

Pimco’s Gross Says Fed May ‘Hint’ at QE3 at April Meeting

March 27, 2012 Comments off

sfgate.com

March 26 (Bloomberg) — Bill Gross, who runs the world’s biggest bond fund at Pacific Investment Management Co., said the Federal Reserve will probably signal it plans to arrange a third round of debt purchases when policy makers meet in April.

The end of tax breaks enacted by President George W. Bush and $1 trillion of mandatory federal budget cuts are raising concern that declining unemployment will give way to slower economic growth that requires support from the central bank. Policy makers under Chairman Ben S. Bernanke have purchased $2.3 trillion of Treasuries and mortgage debt in two rounds of so- called quantitative easing, known as QE1 and QE2, as they try to sustain the expansion.

The Fed is “likely to hint” at QE3 at its April 25 gathering, Gross wrote on Twitter.

Central bank policy makers upgraded the outlook for the U.S. economy at their March 13 meeting, while they reiterated their pledge to keep interest rates near zero until at least late 2014.

Treasury Returns

The statement helped send Read more…

$6 Gas This Summer — U.S. Economy Falls Off Cliff

February 24, 2012 Comments off

etfdailynews.com

Dominique de Kevelioc de Bailleul: 

 Strap on that safety belt for one wild summer of frantic trading in the energy complex, according to economist, prolific author and wealth strategist, Stephen Leeb.  He says gas prices in the US could reach $6 per gallon by the summer driving season.

And if there’s any economic event that could surely torpedo an already near-flat-lined US economy into a death spiral, it will come from a massive price hike in that most critical commodity to any economy—oil.  According  to the charts, oil has again breached the Read more…

Bernanke Lights a Fire Under Gold and Silver Prices

January 26, 2012 2 comments

forexpros.com

“Party on!” was Federal Reserve Chairman Ben Bernanke’s message to Wall Street yesterday, as he announced that the Fed will be keeping interest rates at “exceptionally low” levels until late 2014, owing to concerns about stubbornly-high unemployment and the sustainability of the current statistical recovery. Bernanke also confirmed that for the first time in the Fed’s 99-year history, the institution will explicitly target a 2% inflation rate, as measured on the Personal Consumption Index (PCI). Other central banks have long had explicit inflation targets, but not the Fed.

Unsurprisingly given their enthusiasm for easy money, the market response to this move was euphoric. The Dow gained 0.64% to settle at 12756.96, while the Nasdaq tacked on 1.14% to settle at 2818.31. Asian and European exchanges have also reported Read more…

Gold/Silver Ratio Heads Back Up: Trend Might Continue Without QE3

August 8, 2011 1 comment

seekingalpha

I previously heralded silver’s breakout above $40, as well as gold’s breakout above $1600, as the dawning of the next leg up for precious metals — one that would send silver past its previous high of above $49 reached earlier this year. I still believe that silver will find its way well into triple digits in the coming years, as monetary demand from the global sovereign debt crisis is only escalating and will be the primary driver of silver’s price, but I’m not so sure it will happen imminently; in light of the tumultuous events of this past week, I’ve taken off some of my silver positions in exchange for gold instead. My rationale is as follows:

1. Because of its industrial role — silver is used to create a wide variety of goods, such as warfare weapons and solar panels — silver is more associated with risk. If we see the return of the bear market in equities like we saw in 2008, silver is going to get hit harder than gold.

2. I expected the gold/silver ratio to fall below 40 and approach its previous low of 33. Instead, we saw a bounce off 40. I still believe that silver will unofficially be re-monetized, and that this process will Read more…

$5,000 Gold Later This Decade?

July 18, 2011 Comments off

goldalert

later this decadeGold bullion may reach $5,000 per ounce later this decade, bolstered by rising demand from India and China and slowing production growth, according to Standard Chartered Plc.

Yan Chen, head of metals and mining for the firm, stated that “We are looking for the gold price to reach about $2,000 by 2014,” in a Bloomberg television interview.  ”There’s a chance that the gold price can be as high as $5,000 by 2020,” as income growth in China and India fuel demand for the yellow metal.

Chen’s comments came in the wake of yet another new all-time record high for gold prices, which this morning reached $1,603.80 per ounce.  Gold has been supported of late by the ongoing sovereign debt crisis in Europe, the uncertainty over the debt ceiling in the United States, and the prospects of a third round of quantitative easing (QE3) by the Federal Reserve.

The Standard Chartered strategist went on to say that “The gold market will be in deficit in the next couple of years.  The central banks are now back buying gold massively, turning from net seller of gold into net buyer.”

Poor Man’s Gold is Breaking Out — Sell Your House and Buy Silver?

July 18, 2011 1 comment

businessinsider

   Investors have pushed silver above the recent channel high at around $39 or so per ounce and I fully expect a retest of $50 if any more talk is given about QE3 — Silver rises because of the rising digital money supply, not from speculation. Owning cash is speculative whereas owning metals is conservative or a safe haven at current prices.

Many people will tell you that silver and gold are in a bubble but the fact is that commodities in general are one of the only asset classes that work here because the consolidated banking system is holding our economy hostage and Bernanke is solely focused on saving the banks. Right now, shorting European banks and going long silver and gold looks to be about as good of a “trade” as possible — investors are essentially betting that Europe will face massive credit problems because of the obvious insolvency of Greece, Italy, Portugal, Spain, and Ireland.

The next shoe to drop is the US… We are facing the exact same issues as Read more…

Quantitative Easing Rounds 1 and 2 Hurt the Economy … Bernanke Proposes Round 3

July 14, 2011 Comments off

georgewashington2.blogspot.com

Federal Reserve chairman Ben Bernanke is hinting at a third round of quantitative easing.

But Dallas Federal Reserve Bank president Richard Fisher said today:

I firmly believe that the Federal Reserve has already pressed the limits of monetary policy. So-called QE2, to my way of thinking, was of doubtful efficacy, which is why I did not support it to begin with. But even if you believe the costs of QE2 were worth its purported benefits, you would be hard pressed to now say that still more liquidity, or more fuel, is called for given the more than $1.5 trillion in excess bank reserves and the Read more…

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