As markets expected, Ben Bernanke announced a third round of quantitative easing today in the form of $40 billion per month in mortgage-backed-securities. But unlike other programs with a definitive ending, this will perpetuate until the Fed sees meaningful growth in the economy and a better employment situation. That kind of open-ended policy has many cringing in their seats, as it seems like printing more money is the only weapon that the Fed has left in its arsenal. But despite how you feel QE 3 will perform, there is no question that gold investors were overjoyed to hear the news [for more gold news and analysis subscribe to our free newsletter].
During Bernanke’s speech and up to its conclusion, gold suffered a swift dip, but that was only temporary. The precious metal went on to surge nearly 2% along with big gains for major equities and other commodities. Now, the precious metal has its sights set on $1,800 per ounce and beyond as money printing will surely prop up gold prices in the near term. But this precious metal was not alone, as silver surged more than 3.5% along with both platinum and palladium making a run higher. Below is a chart of gold’s trading through out today’s session.
Now the only question you have to ask yourself is whether or not you think gold will pullback anytime soon, or if it slated to make another run towards $2,000 per ounce. The commodity certainly may slow down in the next few days as the excitement wears off, but with money printing plans from the U.S. as well as the ECB, it would seem that all of the stars have aligned for gold to make a run at its historical high. What do you all think, how high can gold go? Let us know in the comments below!
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Disclosure: No positions at time of writing.
[...] side affect that could actually hurt the economy: inflation. And as inflation fears mounted, money poured into the precious metals market, pushing gold and silver up 2% and 4% respectively. Meanwhile, platinum rose once again as violent [...]
[...] were overjoyed by the announcement of a third quantitative easing program that was announced yesterday. Fed Chairman Ben Bernanke revealed plans for an open-ended QE that will purchase $40 billion in [...]
How high Gold can go depends on how many Government IOU’s are printed.
Gold is constant, it is paper that is being devalued.
Gold is NOT going UP, Paper IOU’s are going down.
Inflation and double digit interest rates lie ahead, leveraged Real Estate will fall.
Inflation numbers are cooked, we all know the facts when we gas up or buy Groceries, but Governments misstating Inflation numbers mean they have to pay less on Indexed Social Benefits.
[...] were overjoyed by the announcement of a third quantitative easing program that was announced yesterday. Fed Chairman Ben Bernanke revealed plans for an open-ended QE that will purchase $40 billion in [...]
[...] was announced on Friday and it is by far the most aggressive action that the Fed has taken in years. Rather than [...]
[...] was announced on Thursday and it is by far the most aggressive action that the Fed has taken in years. Rather [...]
[...] Bulls certainly proved to be in the majority as the market’s upward move was substantial, but as gold prices surged after the QE3 announcement as well, it was clear that some investors were growing increasingly wary of inflation and general market [...]
[...] The Bulls certainly proved to be in the majority as the market’s upward move was substantial, but as gold prices surged after the QE3 announcement as well, it was clear that some investors were growing increasingly wary of inflation and general market [...]
[...] has gobbled up the headlines in the past few days as the asset surged upon the announcement of QE3. This third round of quantitative easing will be the most aggressive and possible to most [...]
[...] has gobbled up the headlines in the past few days as the asset surged upon the announcement of QE3. This third round of quantitative easing will be the most aggressive and possible to most [...]
[...] positive takeaway for investors and that came from Ben Bernanke’s decision to implement yet another round of QE [for more economic news and updates subscribe to our free [...]
[...] one positive takeaway for investors and that came from Ben Bernanke’s decision to implement yet another round of QE [for more economic news and updates subscribe to our free [...]
[...] the announcement of QE3, investors everywhere began flocking to gold. The precious metal has a number of appealing [...]
[...] the announcement of QE3, investors everywhere began flocking to gold. The precious metal has a number of appealing [...]
[...] as weak economic data sent markets lower. As of late, markets have been propped up by the latest slew of central bank plans from around the globe. The new money pumping programs have essentially created a backstop in equity [...]
[...] QE3 was announced on Thursday and it is by far the most aggressive action that the Fed has taken in years. Rather than set a specified amount of money to print, Bernanke and company have pledged to invest $40 billion per month in MBS until they see material growth in the economy. That means that this QE is open-ended and could potentially drag out for a while. If the program were to be in place for just one year, we would print $480 billion. For two and three years, we would add another $960 billion and $1.4 trillion respectively [for more economic news and analysis subscribe to our free newsletter]. [...]
[...] 8.5 million barrels, way over the predicted 1 million. But market euphoria from Ben Bernanke’s QE3 announcement was able to push virtually every asset higher. Then came time for crude to fall. Monday’s massive [...]
If half of what I think is happening before our very eyes, both here and around the world, gold just may shoot up to $3000 or higher before the end of November.
But silver should be even more interesting. Historically, an ounce of silver is generally 1/16th the value of an ounce of gold. However, for the past few years silver has only had 1/52nds the value of gold.
That means that as precious metals become front and center in an economy going down the toilet, there is likely to be a very serious correction in the value of silver.
My bet is on silver. Besides, I have no doubt they’ll one day confiscate all the gold, just like they did during the great depression, offering owners pennies on the dollar.
[...] number of hard assets in the long term. But while a number of securities enjoyed a hefty boost from Bernanke’s statement, some still lie under the radar. Below, we outline five commodity stocks that are underperforming [...]
[...] been rejoicing as not only have major benchmarks charged forward, but excessive money printing and easing on a mass scale makes a number of assets extremely attractive. One of the best investments to make during a time of [...]
[...] HQ (cHQ): How do you see gold reacting to QE3 in the long [...]
[...] number of hard assets in the long term. But while a number of securities enjoyed a hefty boost from Bernanke’s statement, some still lie under the radar. Below, we outline five commodity stocks that are underperforming [...]
[...] the announcement of QE3, investors everywhere began flocking to gold. The precious metal has a number of appealing [...]
[...] it should be plain for investors to see that what happens in South Africa will have a tremendous effect on platinum prices, already at multi-month highs. Therefore, a look at some of the exchange-traded [...]
[...] QE3 now an announced fact, gold has come back into the spotlight. While the actual historical performance of gold as an [...]
[...] QE3 now an announced fact, gold has come back into the spotlight. While the actual historical performance of gold as an [...]
[...] This website is one of the best places on the internet to find up to the minute and breaking gold news and options on the [...]