The certain fact is that Yellen is ready to continue with Fed’s expansionary operations. Therefore no tapering on the horizon so far. More money printing means greater chance for gold price to rise in the coming years.
After a back injury forced him to re-evaluate his Olympic dreams, Ben Davies found a new thrill in the competition of trading. Now managing a long-only gold fund, he strives to protect investors’ wealth while advocating for free market reforms around the globe.
Instead of trying to determine how or when the Federal Reserve will taper or end their monetary experiment, we wanted to juxtapose statements that were made today with the actual facts. Readers can draw their own conclusions.
A week ago I wrote about a potential rebound after capitulation and panic selling in precious metals and the miners. It now appears Goldman Sachs (GS) is covering its short on gold as it rebounds above $1,400.
We are now at the point in the bull market where traders think that stocks are bullet proof. Back in December I warned this was coming. I said at the time that this round of QE was going to be different.
Perhaps you have heard that the Fed is printing money to get out of the crisis and that such actions cannot possibly end other than in even more money being printed and in the dollar losing its ability to buy you tangible assets.
The danger is that the central banks are being overly complacent about false figures while the trend is definitely up. Pump in more and more money, as all the central bank are doing and there is only one way for this inflation to go and that is up.
Look for silver prices to keep rising in the years ahead. That being said, 2013 is likely to be pivotal for the more affordable precious metal. Now that gold has set and surpassed its own all-time highs, look for silver to be next.