The timeless market adage, “Buy the rumour, and sell the news!” may be something to carefully ponder, at this point in time.
Here’s why: A lot of the anticipation for a reduction in QE may already be factored into the current gold price.
The question you may need to ask yourself is, have the bears dropped the ball, by overplaying their QE reduction card?
There is also a classic double bottom forming in gold, and I’m sure that many technical analysts at the major banks may soon begin talking about it, in their daily commentary to investors. For this double bottom pattern to “activate”, gold must trade at $1490, but if it does, the technical target is…. $1680!
There are probably very few gold investors who believe such a move is even possible, let alone likely, but markets have an odd habit of doing what is least expected. [Read more...]
Stewart Thomson: Buy Gold On QE Exit News
Asian Gold Premiums Hit New Highs as Europe Urged to Start “Agressive QE”
Asked yesterday on Bloomberg TV whether the Fed will start to cut its $85 billion program of monthly quantitative easing, New York Fed president William Dudley said “It really depends on how the economic outlook evolves…It’s too soon to make that determination.”
Even if the US central bank does slow its purchases of government debt and mortgage bonds with newly created money, Dudley said the Fed would only be “adding less stimulus” rather than actually “tightening” monetary policy.
Dudley’s colleague James Bullard, president of the St. Louis Fed, meantime warned Europe yesterday that it needs to start quantitative easing to avoid a long, Japan-style depression. “You should worry about it, and then take policy action to avoid it,” said Bullard. “One way to get stuck would be to be passive in this situation and not take some aggressive action to try to get inflation back.”
“Europe can draw lessons from Japan on the dangers of half measures.” agreed new Bank of England governor Mark Carney.
FOMC Minutes Released Early Due to Data Leak, Hints QE to End By 2014
The FOMC has just released their minutes early (scheduled release was 2pm EST) due to a leak of the minutes.
The MOPE continues, with the FOMC members reportedly stating that the pace of QE will slow mid-year, with QE ending altogether by the end of the year:
In light of the current review of benefits and costs, one member judged that the pace of purchases should ideally be slowed immediately. A few members felt that the risks and costs of purchases, along with the improved outlook since last fall, would likely make a reduction in the pace of purchases appropriate around midyear, with purchases ending later this year. Several others thought that if the outlook for labor market conditions improved as anticipated, it would probably be appropriate to slow purchases later in the year and to stop them by year-end. Two members indicated that purchases might well continue at the current pace at least through the end of the year. [Read more...]
Peter Schiff: The Fed Won’t Stop The Monetary Heroin Until We Die Of An Overdose
Source: Banzai7
In an interview with TheBlaze, Peter Schiff makes the case that Bernanke is attempting to re-inflate the housing bubble, and states the Fed won’t stop the monetary heroin until we die of an overdose, and that the reckless monetary counterfeiting will result in a total collapse of the US dollar!
i.e. QE TO INFINITY until the dollar collapses into hyperinflation!
Schiff’s full interview is below: [Read more...]
Ominous Stock Market Technicals
Submitted by Morris Hubbartt:
At this point, quantitative easing is pumping about 85 billion electronically printed dollars a month, into bonds and other “quality assets”. Without the artificially low interest rates that QE creates, the economy would probably implode. I view the current market as a dangerous place to allocate investment capital. I targeted 13,500 initially, for the Dow. Now I’ve added a 2nd target, which is 12,200.
Down-day volume is beginning to overwhelm up-day volume, which is extremely bearish. The Dow could soon form a huge double top pattern, just as the infamous “Sell in May, and go away!” period of time arrives!
Overall, the stock market continues to be a huge beneficiary of QE policy. How long can this stock market rally continue? To help answer that key question in more detail, I am focused on two leading indicators. [Read more...]
“Gold Is The Ultimate Money” says Ron Paul
![Ron-Paul-with-Silver-Circle-Round[1]](http://www.silverdoctors.com/wp-content/uploads/2012/02/Ron-Paul-with-Silver-Circle-Round1.png)
Dr. Ron Paul was interviewed by Fox after the U.S. Federal Reserve confirmed it will continue its QE program highlights the importance of gold as money.
On July 13, 2011, when Dr. Paul was a U.S. Congressman he asked U.S. Fed Chairman, Ben Bernanke, “Do you think gold is money?” and Bernanke replied, “No, it’s a precious metal.” Dr. Paul countered, “Even though it’s been used for 6,000 years?” But Bernanke denied gold was money and said, “No, it’s an asset. Just like T-Bill’s are not money.”
The Fox News interviewer then commented, “Cyprus has taught us that governments can confiscate money that you’ve earned or even paid taxes on. Rampant quantitative easing and price fixing by governments may prop up the stock markets but it doesn’t keep unemployment down. The U.S. Fed is going to continue its QE program which is good for gold.” [Read more...]
FOMC: QE Continues at $85 Billion a Month for Indefinite Future! Metals Smash in Progress!
Fed leaves QE at $85 billion/month
- Inflation target 2%
- Gold & silver raid in progress!2:02 PM Update: Metals retrace entire algo smash!
Full March FOMC Statement is below: [Read more...]
Jim Sinclair: Gold Shorted From $1800 to $1530 by Banksters on Inside Info QE Would Change to Bail-Ins
Legendary gold trader Jim Sinclair sent an alert to email subscribers this morning stating that the reason gold was massively shorted by the banksters at $1800 down to the lows near $1530 was the fact that inside info was intentionally leaked to them by governments wishing to suppress the gold (& silver) price that quantitative easing would be shifting to depositor haircut bail-ins.
Sinclair states that as is plainly seen by the rapidly spiraling out of control Cypriot bail-in, the reason why gold has been so heavily shorted in the paper market is NOT valid, and shorts in the paper market must cover.
Sinclair states that this week’s events in Cyprus ensure that QE to infinity has its foundation solidly set in cement.
Sinclair’s full MUST READ alert is below: [Read more...]
The Fed’s “Exit Strategy”…Monkey Money!
By Bill Holter:
Ben Bernanke testified last week about the Fed’s “exit strategy”. As I’ve written before, there is none, there can’t be one, and there never will be one! Every time in the past when the Fed let up (even just a little) on the accelerator the markets (and economy) would begin a hissy fit. Now, the Fed is even funding the European banking system as reported by Zerohedge .
QE & Gold Revaluation- The Central Bank Nuclear Weapon
Submitted by Stewart Thomson:
Gold revaluation and money printing are the nuclear weapons arsenal held by government treasury departments.
Gold is going higher, much higher. It’s going higher because government treasury departments are moving away from quantitative easing involving bonds, and towards QE involving gold. The gold bears will be destroyed, and everything they made you afraid of will seem ridiculous, in hindsight. There will be no currency war, but there will be co-ordinated devaluation of all G20 currencies against gold, just like there was in the 1930s.
I consider the idea that the gold bull market is over to be “beyond ridiculous”. I would argue that for all practical government intents and purposes, it’s barely started. Ben Bernanke will soon have a hard decision to make. He can either accelerate QE, or he can pout in a corner, while President Obama dons a gold revaluation mask.
Fed to Take Away the Punchbowl? Fat Chance!
Guest Post by Bill H.
The FOMC minutes were released yesterday and said that several participants thought that pulling the punchbowl at some point would be necessary. Fat chance! No, NO CHANCE! There is no chance now just as there was no chance back in 2009 and ’10 with all of the talk of “green shoots and exit plans”. Forget about anything and everything else, if the Fed steps back then WHO will buy the Treasury’s bonds? Anyone have an answer for this one? Anyone? Buhler? [Read more...]
Fed Minutes MOPE: Fed Threatens to End QE; Gold & Silver Vertical Smash in Progress
As expected here at SD, the latest Fed minutes are pure propaganda claiming the Fed may end QE soon as the economy is recovering more quickly than expected. This is as even Walmart’s sales are crashing.
Cue the anticipated smash in gold and silver.
and….Gold & silver dropping vertically as expected. Unbelievable.
Full Fed Minutes release is below: [Read more...]
Silver Prices – The Big Picture
Submitted by Deviant Investor
Question: What do May 2004, January 2005, August 2005, June 2006, October 2008, February 2010, September 2011, December 2011, June 2012, and December 2012 have in common?
Answer: They represented significant price lows in silver, AND those lows were confirmed by the weekly stochastic (14,3,3) indicator and the weekly TDI Trade Signal Line (13,5) as shown in the following chart of silver prices since 2004. Approximately once per year the weekly stochastic and weekly TDI indicators have given a “buy-signal” in the silver market.
The ten year chart of silver prices is plotted on a logarithmic scale and shows a highly volatile exponential increase in prices over that ten year period. Note the higher trend line extends to approximately $100 by the end of 2013. [Read more...]
Deepcaster: Investment-Critical Baseline Realities in a World of Currency Devaluation
Submitted by Deepcaster:
“Money printing creates illusory wealth and buys time, but if it was truly the answer to a deleveraging cycle, Zimbabwe would be a member of the G10.“
The recent Equities Rally and Glimmers of Economic Recovery are Artificial because they have been bolstered up on a Tide of Central Bank created liquidity (via QE etc.).
They have not been generated in the healthy sustainable way by savings and Investment. Therefore, it is highly likely they are Transitory.
Given the Daunting Challenges facing the U.S., Eurozone, China, Japan, and other economies, and the understandable Investor uncertainty about how these challenges will be met, it is essential to review Key Baseline realities Critical to Profitable Investing.
As repeated Doses of QE become less effective, the Central Banks, specifically The Fed and BOJ, resort to a related Baseline Reality: Money-Printing-to-a-greater Degree than other Central Banks, i.e., to Currency Devaluation.
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