The price of gold jumped to $1,733 and silver to $33.50 an ounce on news of worse than expected US job figures. The US economy added 96,000 workers last month following a revised 141,000 rise in July that was smaller than initially estimated.
This is thought to increase the probability of the Fed chairman launching another round of money printing or QE3 next week to boost the economy.
ECB money printing
Meanwhile a statement from the Bundesbank on the ECB’s new bond program commented that it was “tantamount to printing bank notes,” confirming the assumption that the German central bank was the only vote against the scheme announced yesterday.
Precious metals are the investment class of choice as the central banks turn on their electronic printing presses as their supply cannot be similarly inflated. They are also increasingly big buyers of gold and that also helps to push the price up. It’s a double whammy.
Silver is in shorter supply than gold and the total market size is tiny so it reacts more to the upside and downside in terms of price. ArabianMoney thinks this will be a great month for precious metals and our investment newsletter’s ideas for boosting returns on silver this month are working very well.
For September only we are sending a free copy out to anybody interested in subscribing (email: firstname.lastname@example.org). Next month we will move on to the next stage of this strategy.