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 Replies: 16 / Views: 2,315 |
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Pillar of the Community
United States
1903 Posts |
Wow, what a spike the moment Uncle Ben opened up monetary easing! Wow!  |
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Valued Member
United States
376 Posts |
Sorry for being totally ignorant. As I have only been a collector for not even half a year. What is QE? I see people talking about it on here a lot and havent really researched it
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Pillar of the Community
United States
830 Posts |
Quantitative easing (QE) is a fancy term for printing lots of money. The result of the extra money printed up out of thin air and dumped into the economy is that all the money already out there now becomes less valuable.
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Pillar of the Community
 United States
1903 Posts |
Quantitative easing...is where the Federal Government, or at least perceived as the Federal Government ( the Federal Reserve has no real ties to our government directly...which is a WHOLE story unto itself ) purchase securities from the banking industry to in a sense, inject money into the economy. This devalues what money is already in the economy but gives the economy more money to "play" with. It is thought to hold back inflation....by deflating the economy....but in essence punishes those who save cash ( by making what you saved worth less ) and rewarding those who spend irresponsibly ( by making what you owe worth less ). It can be viewed as either a backdoor tax or wealth redistribution...but does reward those who invest in commodities such as precious metals. In the most basic description....based on the claimed $40 billion a month IF it stays steady...which it will likely go up...the Federal Reserve just announced they will print at least a half trillion dollars of new money....making our economy worth essentially 3% less as of today. So for those of you with money sitting in a bank account gaining 1.5% interest...as of today your savings LOST 1.5% for the year. Combine that with a 2% rate of inflation and the buying power of the money you have in the bank went DOWN 3.5%. In contrast as I type this...those who invested in precious metals...their value just went UP nearly 4% today. That is a 7.5% swing.....ouch! Or hurrah! Depending on which side of the fence you fall
Edited by unholyroller
09/13/2012 2:19 pm
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Pillar of the Community
United States
3670 Posts |
Its this simple I owe 50k for example Joe Smo, and to get out of it I am gonna borrow 10 more k an use it correctly to get out of it this time, nothing more just on a much larger scale eh....
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Pillar of the Community
United States
3670 Posts |
I filed for bankruptcy bout five years back, and already EVER Tom, Dick, and Harry lender in America tries to get me to take a loan.... ebay an Kabbage will even give me up to 4500 cash within 10 minutes to invest in whatever I want.... Right there is the fundamental problems with the country now down to the smallest businesses. Money being given to people who have ZERO ability to manage money well, like me lol... Edited by Silverhawk74
09/13/2012 2:19 pm
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Pillar of the Community
Mexico
1304 Posts |
Yeah, but Hawk, we all know you can manage silver well....that has to count for something. Right? ;)
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Valued Member
United States
376 Posts |
Very interesting. I suppose I sort of knew about that just never knew it was called QE lol. Learning something new every day
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Valued Member
United States
214 Posts |
So how does everyone think this time around will mimic the last round of qe? In other words: what do you think silver and gold will do? If I recall, silver shot up to near 50 an oz? Will event be the one to let silver surpass 50? Thoughts?
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Pillar of the Community
United States
3670 Posts |
Who knows 50 plus is probably inevitable again, but even some new "quantum easing" (Is that not what QE stands for?) it may just do it real fast before X-mas....
And Harrison, yes if it were not for pmz via gold an silver I would have closed up shop long ago, the one item I rarely have for long....
I love old vintage toy collectibles and such, but I must say the market is real down, as it should be via wise people all around the world knowing there are bigger fish to fry in the days to come, and luxury collectibles is the least of many's thought pattern these days I figure....
If I could go back in time six months, ALL my stock would be PMz only no doubt....
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Pillar of the Community
Canada
1723 Posts |
It will be interesting to see. The way I see it is there is 2 options really. Up or down. Now we all heard that before since silver is really unpredictable but rather than just saying up or down....the actual 2 thoughts I had are as follows. 1) We get to $50 and it just slams right through and just keeps going until the masses ( unbeknowingst to them but beknowingst to us :-) <--- some of you may get that) learns about silver and piles in. At this point it will go right parabolic to highs we can only dream off before that bubble bursts. I think we need to have the right mix to creat this frenzy and I dont see it... so I'm thinking option 2 is the way its gonna go, but playing both slot machines just in case 2) We are going to see it just about get to 50 and people who are in silver are going to remember the last time it was there and will sell out of fear thinking that this is the top and take their profits, or recoupe the money they had previously invested when prices were at this level. But hey Just thought of number 3. 3) Mass selloff at 50 by profit takers and to shake off loose hands and then a shoot up to new highs by the momentum of the run back to 50. Ok there ya go, my thoughts...too bad after reading all this you still dont have an answer huh...hehehe...foood for thought if you havent made dinner already! CHEERS! I saw this on another forum that I thought you would like to see.... If you're allowed to. https://www.kitcomm.com/showthread.php?t=108779Edited by samsnate
09/13/2012 11:02 pm
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Valued Member
United States
223 Posts |
All I know is I'm just glad I didn't sell about 20 ozs a couple weeks ago. I was thinking of letting some go to finance a new gun. Decided to wait a bit when the talk about QE3 was getting started. I might get rid of the junk silver at around $40. I see a Friday with another nice move up and then Monday will be telling because the weekend will let things settle out a little. I'm definately not buying right now in any real quantity. Might be time to work on the BU Franklin set. Or, get started on a set of Peace dollars. |
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Bedrock of the Community
13014 Posts |
If it hits 50 or starts approaching it well see some massive government type moved to get the price back down.
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Pillar of the Community
United States
619 Posts |
I needed some cash for bills about a month ago. I didn't want to get rid of any silver, though. I thought for a while, then realized what I could do. I did something I'd never done; I pawned some of it. I paid it back in a couple of weeks, with a bit of interest. The spike in silver prices more than made up for the interest. Now, my wife doesn't think my stacking is so crazy.  Edited by CPC24
09/14/2012 12:22 am
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Bedrock of the Community
Australia
21788 Posts |
PM's are NOT suddenly worth more.
Fiat money has just suddenly become to be worth less.
That is expressed in rising fiat money prices.
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Pillar of the Community
United States
1796 Posts |
Precious metals are inevitably going to surge up quickly (due to speculation) but after the shock, they'll come back down and resume slower, steadier growth.
In essence, precious metals aren't suddenly worth more after the announcement. The current spike is due to hype and panic. They *will* be worth more, solidly, over the next few months as the value of the dollar declines.
Invest wisely.
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Replies: 16 / Views: 2,315 |
Posted 09/13/2012 1:08 pm
