Monthly Archives: December 2013

Today’s Key Gold Headlines – 12/23/13

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The Fed’s “Tightening” Is Actually Easing (Video)

Yahoo! Finance’s Breakout interviewed Peter Schiff about the Federal Reserve’s contradictory announcement to taper QE while essentially guaranteeing 0% interest rates for years to come. Peter argues that if the markets can’t stomach higher interest rates in the middle of a recovery, when will the Fed be able to justify raising rates again?

“They tightened by easing. In fact, Ben Bernanke claimed that he wasn’t tightening. In fact, I think he thinks that the zero percent interest rates are more important than the QE… If it really is a recovery, why do we have any QE at all? Why are interest rates still at zero? The Fed is more accommodative now, five years into a so-called recovery, than it had ever been in the past at the depth of a recession.”

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Today’s Key Gold Headlines – 12/20/13

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Ambiguous Fed Statement Means Headaches for Yellen

Peter Schiff has shared his thoughts on the Federal Reserve’s decision to begin tapering QE in January. While the Fed’s official statement suggests the economy is improving, it also gives plenty of room for stimulus to be ramped back up in the future. Fortunately, physical precious metals will likely remain at bargain prices until the market realizes that a real exit from QE is impossible.

“There can be little doubt that today’s Fed announcement is an epic attempt at rhetorical audacity. The message they hope to convey is that they are tightening monetary policy by loosening it. Based on the early market reactions, the trick has seemed to work.

I believe the Fed was forced into this exercise in rabbit pulling because it understands far better than the cheerleaders on Wall Street that the economy, despite the soaring gains in stocks and real estate, remains dependent on continued stimulus. In my opinion the seemingly positive economic signs of the past few months are simply the statistical signature of the QE itself. There is little evidence to suggest that the trends are self-sustainable. But seemingly strong data had made the arguments in favor of continued QE increasingly untenable. As they could no longer stay the course the Fed had to do something. Ultimately they decided to play it both ways.”

Read the Full Commentary Here

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Upside Potential for Gold Greater Than Downside Risk

The Wall Street Transcript released its Gold and Precious Metals Report, which includes an interview with Peter Schiff on gold’s performance in the past year and what to expect in the physical precious metals market going forward. The full report is available for download here. Yahoo! provides an excerpt from the interview:

“TWST: Gold has been not a great performer this year. What’s going on?

Mr. Schiff: Well, obviously some of the people who made a lot of money in gold over the years may have decided to cash in, but I think – more likely I think the speculators, who finally, finally got into the gold market over the last couple years decided to get out and cut their losses, because I think they saw the big run-up in the stock market, they believed all the hype about the recession being over, about the Fed being ready to tighten and take away the QE, and I think they believe that the case for gold was undermining.

So they sold their gold and went back into the stock market, because that’s where a lot of that speculative money came from. It came from stock market investors, who had lost money in the market over five or 10 years, didn’t own any gold, and then after seeing gold go up four or five times decided that they would want to buy some. And they got shaken out of the market in its last correction, and I think that’s very healthy, because I think the next leg up in the bull market – I think we have a long way to go before some of those speculators get back into the market, and of course by the time they do the prices will probably be well in excess of $2,000 an ounce.”

Read the Full Excerpt

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Today’s Key Gold Headlines – 12/18/13

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QE Will Never End; Precious Metals Severely Depressed (Video)

Marc Faber, publisher of The Gloom, Boom & Doom Report, broke the news to CNBC that the Federal Reserve will never completely end QE and that the stimulus is likely to become larger in the coming years. Later in the interview, Faber indicates that now is the time to get into precious metals like gold and silver, because the prices are extremely depressed.

“They will never end QE for good…Once [these programs ] are introduced, they usually keep on going. They may do some cosmetic adjustments, but within a few years, the asset purchases will be substantially higher than they are today.”

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Posted in Outside Commentaries, Videos | 1 Comment

Today’s Key Gold Headlines – 12/17/13

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2014 Supply Crunch Means Higher Gold Price

In his latest piece with Casey Research, Jeff Clark lays out the main factors that might lead to a gold shortage in 2014. The trends Clark cites have been apparent for several years, but 2014 might be the year that Western purchasers of gold really start to notice the squeeze.

“If you’re like me, you’ve bought gold due to the money printing policies of most developed countries and the effect those policies will have on the future purchasing power of our paper money. Probably also because there’s no viable way for governments to escape the consequences of all the debt they’ve piled up. And maybe because politicians can’t be trusted to formulate a realistic strategy to avoid any number of monetary, fiscal, or economic crises going forward.

These are valid, core reasons to hold gold in a portfolio at this point in time. But a new trend is under way, and someday soon it will be just as much a driving force for gold prices as anything else: a good old-fashioned supply crunch.

A few metals analysts have mentioned it, but it escapes many and certainly is off the radar of the mainstream financial media. But unless several critical factors reverse course, a supply shortage is on the way with clear implications for the price of gold.

The following four factors are combining to diminish gold supply. While we’ve touched on some of them before, put together they’re creating a perfect storm that will, sooner or later, impact the gold market in several powerful ways. As these forces gather steam, you’ll want to make sure you’ve already built a substantial position in physical bullion.”

Read the Full Commentary Here

jeff clark

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Today’s Key Gold Headlines – 12/16/13

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