Fed statement lends support to metals

IMG Auteur
 
Published : May 03rd, 2013
300 words - Reading time : 0 - 1 minutes
( 1 vote, 5/5 ) , 1 commentary
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
1
comment
Our Newsletter...
Category : Market Analysis

24hGold - Fed statement lends ...Things have cooled off in the gold and silver markets, with the former trading in a range between $1,450 and $1,480, and silver moving between $23 and $24. Both metals sold off early in New York futures trading yesterday, but rebounded following the release of Fed minutes indicating that the Fed will consider increasing its money printing efforts upon any signs of renewed weakness in the US economy.

Of course, as the last four years have shown, it’s one thing increasing the monetary base (that portion of the money supply that increases as a direct result of Fed asset purchases), but quite another thing to guarantee that this new money will flow into the broader economy. With banks continuing to sit on huge excess reserve holdings at the Fed, Bernanke is not getting much bang for his quantitative easing “buck”.

In fact, despite the initiation of open-ended asset purchases last September, as Robert Wenzel notes at his blog, the rate of growth in the M2 money stock – the broadest measure produced by the Fed – has declined from the growth seen in 2011 and in late 2012. A rebound – as seen last summer – is of course possible, but further declines would sharply increase the chance of another serious leg down in the US economy.

Strong demand for coins and bars continues to attract media attention, with US Mint sales of gold coins at three-year highs, and reports from Australia of lines of customers 600-yards long outside of bullion dealers. In other news, the state of Arizona has become the second state – following on from a similar Utah law in 2011 – to make gold and silver legal tender in the state, with effect from mid-2014. A dozen other states are said to be considering similar laws.

Data and Statistics for these countries : Australia | All
Gold and Silver Prices for these countries : Australia | All
<< Previous article
Rate : Average note :5 (1 vote)
>> Next article
Comments closed
  All Favorites Best Rated  
A appreciate separation from bullion and ETF paper promises. If I can hold it in my hands it is really mine!
Rate :   0  3Rating :   -3
EmailPermalink
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
A North Korean EMP Attack Can Create 90+ Fukushimas in the U.S.
12 DecThe Recusant1
Setting aside the sensationalist fearmongering of the article, the fact is that the NRC requires U.S. nuclear power plants to be able to shut down ...
Six Ways US Stocks Most Overvalued in History
12 DecThe Recusant
The problem with the current massive indebtedness of countries is that the central banks are now creating fantasy currency to accommodate the finan...
The Flat Earth Society Responded To A Tweet By Elon Musk: ‘Thanks F...
11 DecS W.-1
Thanks for letting me state my opinion! Your comment is insulting. Try as I might I am yet to find any scientific evidence of AGW or the e...
Peter Schiff Warns Of CRASH: ‘Everybody Is Going To Get Wiped Out!’
08 DecThe Recusant
"Schiff also said no one knows when this is going to happen for sure, only that it will happen." Peter has been warning of the next crash for years...
Meet The World’s Most Powerful Bitcoin Backers
07 Decsonora69
Why run a business or work for one when you can mine bitcoins for the price of the servers and electricity? The higher the price of bitcoin, the mo...
What Now?
04 DecDoom
Mathematically, doubling down is an amazingly powerful strategy...until it isn't. http://professorconfess.blogspot.com/2017/11/doubling-do...
The Flat Earth Society Responded To A Tweet By Elon Musk: ‘Thanks F...
03 DecS W.
I put the Flat Earthers in the same category as those who believe there is a God, a Heaven and a Hell.
Whipping-Post Politics
02 DecMr. Gnawbone1
I couldn't agree more, Keillor's dismissal was a bridge too far, but it is reflective of the fear, by Boards of Directors across the US, guiding ...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS