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Platinoid
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Money Supply Soars as Fed Eyes Taper

- Michael Pento - Delta Global Advisors

The 'nugget' here for those buying metal is Pento's point:

"After all, the gold market has been busy pricing in the end of QE for multiple quarters. There is a good chance that the beginning of tapering would lead to a reversal of the trade to sell gold ahead of the news. "

I wish I knew just how 'priced into the metals market' the threats of tapering really are.

If Gold drops to $1,000, then at about 60:1 silver should be sitting around $17 give or take a
few panic attacks from those who got in at $40.

Well we saw $18+ silver a few months back after 'The Bernanke' hinted at tapering, but then,
the markets and miners took a big punch as well.

Are metals 'priced in' right now for tapering?

There wasn't much of a reaction when the People's Bank of China announced they would
start tapering their foreign reserve buying - ie US Treasuries - as they were 'no longer
warranted.' So maybe we won't see $1,000 gold and $17 silver.

Maybe now is the test for a bottom in metals.

Wish I knew. We can't control that, just our outlays to continue increasing our
metal holdings, so DCA good associates, DCA. Maybe put a little aside if the
'Big Dip' hits the fan, and we find out the markets have hedged metal more than
actually priced in the tapers.

But in the absence of a crystal ball, just continue
to "DCA, all the way" - keep accumulating, but control your outlays.

Commented 3800 days ago

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Beginning of the headline :The money supply as measured by M2 is now rising at a 12.1% annualized rate, which is causing the fickle Fed to renew its threats about ending QE. The minutes released from the latest FOMC meeting indicate the tapering of asset purchases could once again begin within the next few meetings. Could it be the Fed is finally getting concerned about the asset bubbles it so desired to create? The robust increase in money supply has pushed stock prices higher; you could also throw in diamonds,... Read More

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