In Global Currency War Gold Is The Victor
Gold and Silver prices turned modestly lower on Friday, with the price to invest in Gold easing to $1,573.60 an ounce, and the price to invest in Silver dipping to $28.49 an ounce, even as a top official from the Fed said in an interview on CNBC that the central bank will continue its easy monetary policy for a long time to come. "Fed policy is very easy and it's going to stay easy for a long time, I think," said James Bullard, St. Louis Fed president. "This is a monetary policy that packs a punch."
The Fed isn’t the only central bank easing. “It’s a currency war, and the only real winner in a currency war is Gold,” says Peter Schiff, of Euro Pacific Capital. “I think there are more reasons than ever to buy Gold.” The Fed is just one of several large central banks worldwide, like the Bank of Japan (BoJ) and the Bank of England (BoE) that some believe are adding fuel to the global currency war each time they depreciate their currencies.
The Reserve Bank of Australia has had six rate cuts over the past 16 months totaling 1.75 percent working their way through the economy. The European Central Bank's (ECBs) short-term interest rate, a historic low 0.75 percent, but it is still well above most of the other major central banks, some believe that may soon change.
When the minutes from the January FOMC policy meeting were released on Wednesday, the debate between policymakers, both voting and non-voting, over the wisdom of continuing the Fed's quantitative easing (QE) program, the Dow and commodities declined sharply. “A lot of people have been scared out of the market, but then the market makes new highs,” said Schiff. “The fundamental case for Gold is as strong as it’s ever been.”
The Fed is more likely to expand QE, than shrink it, says Schiff. “The only thing maintaining an illusion of [economic] recovery is QE,” he continued. “If the Fed were to stop, we’d be right back in recession.”
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I do not accept responsibility for being incorrect in my speculations on market trend.
I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader.
I do not accept responsibility for being incorrect in my speculations on market trend.
King Regards
