What the latest indications from the Fed and ECB mean for precious metals
Pointing to gold and silver’s surge in value over the last few weeks, Bengt Saelensminde writes on MoneyWeek that “precious metals are back.”
And all of this recent momentum can be attributed to one thing: “The central banks bailing out reckless banks by minting a load of new money.” Saelensminde cites figures, specifically a chart published on ZeroHedge last week, that show an undeniable correlation between the price of gold and the balance sheets of central banks. In fact, the value of gold will just on the mere speculation of money creation.
With the ECB promising to do “whatever it takes” to keep the Eurozone intact, coupled with the practical imminence of the Federal Reserve commencing with a third round of quantitative easing, we’re only going to see more and more money entering the global economy in the next few months. Which, according to Saelensminde, can only mean one thing…ecb, Featured, federal reserve, qe3, quantitative easing