gold-eagle.com / by Jeb Handwerger /
Since
July we have alerted our readers to a breakout in gold and silver
prices as we expected a risk on rally in commodities with the catalyst
being QE3 combined with worldwide stimulus moves from Central Bankers.
Since that time silver has soared 30% higher almost 10 straight weeks in
a row as Bernanke announces a QE 3, 4, 5+…? and record low interest
rates until mid-2015.
Silver
has been outperforming gold over the past 10 weeks as investors are
hoarding and buying poor man’s gold to hedge against worldwide
quantitative easing and pump-priming being implemented by Central Banks
around the world to devalue their respective currencies.
The Bank
of Japan joined the Fed, ECB, China, South Korea and others by
announcing an aggressive stimulus program. This is extremely
inflationary and bullish for gold and silver and bearish for the
purported safe havens namely the U.S. dollar, long term treasuries,
Euro, Yen and Yuan.
Remember Japan is the third largest economy in
the world and they are currently facing an economic slowdown, rising
electricity prices due to increase oil imports and is in the midst of a
territorial dispute in the South China Seas with China. Japan is
mimicking Bernanke’s QE decision last week to attempt to devalue their
currencies to boost exports. The Japanese stimulus is massive and will
now total nearly 20% of Japan’s total economy. The U.S. dollar is
falling as these drastic moves were much bigger than the consensus
expected.
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