Gold, Silver Prices Jump on Fed News
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Spot gold at $1600 an ounce!
Well, not yet, but I predict it’ll be happening really soon. Today, the spot gold price jumped over $13 an ounce as soon as the Federal Reserve Board released the minutes of its FOMC meeting. It seems that the minutes of this meeting indicated that the members of the Federal Reserve were contemplating printing more money, just weeks after it ended its QE2 program.
Yes, it would seem that a QE three program is on the horizon. Though many may not realize it, the feds printing of money has caused the dollars value to deteriorate, and even though the government won’t admit it, real inflation is moving up. Since the government does not count the cost of gasoline or food in its inflation index, this index has remained relatively stable. But as we all know, one trip to the supermarket will reveal that QE one and QE2 have boosted real inflation.
Probably the biggest beneficiary of the government’s actions of flooding the system with money, has been the stock market. But what many people don’t realize is that their retirement funds and savings accounts though on paper may show modest increases, the purchasing power of those funds has been severely eroded during this current government administration.
Unless you believe in the government’s concept of throwing good money after bad, it may well be prudent to invest a small portion of one’s assets into precious metals.
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