This past week the Fed announced that it would engaged in a continuous stimulus program from now through 2015 due to the continued weak and anemic labor market. The Fed committed to a monthly outlay of $40B to purchase mortgage backed securities. the theory here being that this will help stimulate housing and subsequently the labor market.
We’ve been hearing and talking about QE3 all summer. Despite the fact that we all knew and understood that QE3 was coming, gold moved sideways in the $1500 to $1600 territory, for weeks. Now, just before QE3 is announced, gold spikes up past $1700 and into the $1750 range.
What’s going on here?
Not to be one to engage in conspiracy theories, buts its almost as if there is insider information being passed around. We’ve known for weeks there would be some sort of Fed action. We did not have any really significant economic news, yet, gold is up suddenly.
Its our theory that there are insiders that do get a glimpse as to what is coming. More specifically, such inside information clearly bodes well for metals.
Self Directed IRA Actions
Metals have definitely shown the next new bull leg. QE is here to stay. The government has not fixed one single problem in our country. The American electorate can’t clearly see that their current president has not delivered, yet the think that they may still want to vote for him despite his inability to deliver tangible results. Based upon this the risk is on. We see nothing positive coming from the government and maybe not the presidential election. Dr. Ben is printing like mad. the dollar will continue to be debased and lose value. Inflation will continue to creep into our lives.
We still have a buy and hold action for gold and silver in your self directed IRA. We recommend holding physical gold and silver for the ultimate hedge and protection with your self directed IRA.