An End To Stimulus... This Year?

The Fed will print until they run out of ink. It is a guarantee of higher PM prices to come.

Short of a massive world war or alien invasion where we save our creditors and they forgive the debt we will never get the debt paid back down to 0 its just to large at this point

It is all just tactics to influence investment demand in PMs among other things.

So don't buy any more silver because its going to fall!

BTW those words were very hollow, just like this story.

Today, another negative reaction to the Fed statement. BUT also in conjunction with that move, the long bond is starting to die off. So one could look at that, and summarize that assets are flowing out of defensive positions such as PMs and Treasuries.

I do think PMs go lower from here. Is it because PMs are done and going back to zero? I don't think that, but I do feel that money is rotating out, and its going into the equity markets in a big way. (BTW, when I am talking about these inflows of cash into different assets, I am not referring about Bill and Mary Public and their money. Rather I am referring to the institutional money, money managers, hedge funds, asset management companies etc, these are the ones that move the market)

Now I realize many will disagree with this statement- Central banks print enough money and accommodative stimulus and it finally sticks, helping a fragile economy get out of the hole.

The fact is, things are slowly getting better. I know, hard to believe. Yes, I understand where you all are coming from.

However, none of us dictates where the prices of PMs go. That is the markets job. ... and the market I feel is saying, based on price action, that they want to lighten up on metals for the time being.

So while it appears that gold and silver are ready to continue grinding lower, there's a positive we can take out of this. There will be bargains. I can see the general public that just recently started to jump on PMs, will be dumping, and dumping in a big way as they once again, get messed up... doing the ole "buy at the top, sell at the bottom" sort of thing.


I believe we will be seeing this coming down the pike. Reason I say this, that while the equity markets grind up,the general public is not involved in them, rather they have gone to bonds and, sadly, bought PMs at the high price range. As it always goes, everyone gives up, and runs like a school fish to someplace else.

SO, lets just be patient and I believe we'll see the general public start down the road to dump gold and silver, even below spot just to dump their coins.

PS- one final point about gold. I feel going forward, its gained status as a currency, rather than a hedge. All this crazy printing of money at some point will have some sort of nasty problems and side effects... and thats where gold will show and shine as a currency that holds its value.

PSS- one last thought, look how FAR gold has come! from making an all time high of 800ish, dropping down like a rock from there, here we almost touched 2,000. Thats one heck of a run, so for it to pull back, grind, chop and go sideways and do nothing for a while would be a BEAUTIFUL thing,,, give it some time to rest!

Yes. There's no doubt that without all this Central Bank easing, mind u, EVERY SINGLE Central Bank around the world has done this, getting anything to stick and improve would be so utterly difficult. So its good that things are getting better slowly, I dont think anyone of us wants us to see things going to heck and imploding.

Nevertheless, at what expense have they done this? What side effects have taken place? What impact will we see down the road? Those things we;ll have to just wait and see.

While these prices are going to slide, PMs that is, I agree that going long, sticking to the course, adding a little bit and not using all your cash with PMs is still a good way to invest if that's your goal AND for collectors this drop in prices is going to be a boon,,, because there will be some sort of price drop and deals to be had, so be patient, use your cash sparingly and shop around!

Yea kind of a weird time, 2012 ASEs sold out and 2013 not out yet. With the lower prices too I'm sure some places are either pulling stock or only selling part of it to wait for the higher price to come back

So, gentle people, how are we to rationalize all of this central bank printing largess with their rapacious buying of gold? It's possible that a cynical view of their actions would be that they are madly printing their way to economic success but, if that fails, they will have vaults filled with gold and probably some silver too. But... do not worry yourselves about any of this because we will have massive amounts of freshly printed paper with which to console ourselves! Now, if only it will buy anything.