Without QE, PM's should only maintain current price levels but not increase.
Right now the Euro is dying. This is a 2008 redux. Money is flowing into the dollar as a response to the crisis. And as long as the USA can profit from Europe's demise, with fresh foreign funds flowing into US Bonds, why would the Fed need to do more QE?
QE is a response to a lack of demand for US Bonds. The FED picked up the slack when demand for US Bonds was dropping after 2009. That's all QE comes down to. Low demand for US Bonds and there will be QE. The FED's recent Operation Twist is just a way to help push money into short term bonds so the US will be flush with tons of cheap cash to profit from the death of Europe.
Downright devilish, if you ask me.
As far as the bottom goes, I will be SHOCKED if silver stays below 30 and gold stays below 1500. The demand for the metals has become voracious as the prices for them have dropped due to Europe's liquidation. Dropping below 30 or 1500 and the big big big big money funds will start buying, pushing the prices right back up.
Metal dealers everywhere are taking huge losses from this.
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I am thinking the same thing on silver.
What kind of time frame do you think that will happen in?
It really depends on how long the Euro's death lasts. If Europe's death takes 4-6 months, like the 2008 crisis did, then PM's will stay low throughout the year. There should be plenty of time to buy.
Fuck, we might not see PM's rise again until 2013. Once Obamacare kicks into 2014, we'll see the USA's deficit really explode, Japan style. Then money printing will become all the rage. My timeline for the bankruptcy of the USA is around 2020, so these next two years are gonna be impossible to predict. The dollar will probably stay king until the USA's bankruptcy starts in earnest.
I personally did not expect the Euro to go down so easily, and it may still yet be saved with heavy Euro printing.
NOTE: Be wary of rate increases. Any rate increases means the death of the PM bull run. The FED said they will not increase rates until 2013, so there's nothing to fear just yet.
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