Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

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
The Fed Has Bankrupted the US In Order to Create Another Bubble
29 AprSilverthumb
I believe this bubble will pop, the big question is when. I underestimated the power of the Fed and monetary policy. I believe that during the We...
The parable of the cards
28 Aprdom1971
Please let me take this a step further if I may... because I see an opportunity to highlight a particular concern of mine. Let us ignore f...
Debate Over Electric Trucks: Let’s Get It On
25 AprJerry82
Thanks Mish, this was a very insightful and thought provoking piece. I've often heard concerns about the weight of these new electric trucks and th...
No, The Junior Mining Stocks Are Not About To Implode - Dave Kranzler
25 AprJerry821
Thank you Dave for this excellent article. I agree with your well thought out critiques that point to junior miners being just fine. Relying on tha...
Gold Bullion Erases $10 Bounce Despite French Election, N.Korea Ris...
25 AprJerry82
I don't know how much I'd trust the listed GLD holdings. I always found GLD's structure to be a bit strange. They so famously claim that they are 1...
The Story of Gold Money, Past, Present and Future, by Edwin Walter ...
18 AprJerry82
Thank you for this very thought provoking piece Nathan. I have not read any literature from Edwin Walter Kemmerer before but I am inclined to pick ...
Gold Prices Slip $10 After Breaking Downtrend as UK's May Seeks Bre...
18 AprSam Maher3
"That left the GLD gold ETF needing a 2017 high of 849 tonnes in bullion backing." I frequently see you make these claims on GLD's holding...
Bombs Away!
17 Aprprljr-1
James tribe owns trump.
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS