Silver Dollar Values Prices $2500 Gold Hitting The Roof, Jim Rogers Twitter Posts "Traders Shou
Gold gradually climbed up $3.50 or 0.21% in New York yesterday and closed at $1,695.30. Silver rose to $32.27 in Asia, lowered to $31.90 in London, following which hit a high of $32.40 in New York and completed getting a gain of 1.84%. Gold slowly climbed down overnight, but is not far from the 6 month high struck last session as weak monetary info from the US strengthened hopes of further stimulus actions by central banks.
US manufacturing shrank at its quickest pace in more than 3 years in August and US construction spending lowered in July from the greatest amount in a year, the disappointing ISM index and construction spending info had been released yesterday.
These types of reports fire up further hope for investors that Ben Bernanke will launch QE. Gold rose 4.5% in August and is now concentrating on the $1,700 price level as soon as more, most likely probably the most since January, on conjecture that the Federal Reserve will add to its $2.3 trillion bond-buying strategy. Traders are awaiting the essential US employment info due on Friday for further signals on the poor nicely being of the US financial climate.
Bill Gross, the co-chief investment officer and founder of (PIMCO) Pacific Investment Management Co., manager of the world’s greatest bond fund, stated in a Twitter post yesterday that indicators that the European Central Bank may also increase actions to increase monetary improvement are “very reflationary†and mean that investors ought to “buy gold, TIPS and real assets.â€Â
Highs in gold prices since 1975 have usually been associated with growing real interest rates. Occasions when real interest rates fell in tandem with gold prices consist of 1987-1990 and 1996-2001. Even though real rates are have risen somewhat, they remain beneath their historical average and levels beneath 2% have nonetheless been supportive of growing gold prices.
The 2% real interest rate limit has served as an inflection point for gold prices. Gold prices had been in the doldrums from 1980 to 2000, when real rates stayed higher than 2%. While real rates had been volatile all through this time, gold prices continued to reduce even as real rates had been pretty unchanged.
Gold prices didn't move dramatically from 1980 to 2000 and had declining correlations with debt levels because GDP improvement was sufficient to mute fears about spending spending budget and deficit issues. The present monetary recovery has been also weak to support a continual rise in real rates above the 2% level which has acted an inflection point for gold prices. LOOKING FOR GOLD COINS, RARE COINS, SILVER COINS? Learn More >> GOLD COINS [http://www.silverpricestoday.cc/GOLD-COINS/]
With power and food increasing prices deepening and soon to influence consumer price indices, interest rates may have to rise significantly in order to restore real interest rates above 2%. This truly is with ex-Federal Reserve Chairman Volcker did in the late 1970’s - when he elevated interest rates to above 15% in order to shield the dollar and aggressively cope with increasing cost of residing.
It is unlikely that the Bernanke Fed could implement comparable 'hawkish' monetary policy nowadays. It is unlikely that they would as well as doubtful if they could - provided the appalling fiscal scenario and levels of debt in the US and international financial climate.
A ongoing succession of higher real gold prices above the increasing cost of residing adjusted high, or real record high, of $2,500/oz is probably till we see interest go back to more normal levels and zero % interest plans are supplanted by good real interest rates. My recommendation could be to purchase silver now, purchase gold these days. How High Will Silver Go? Learn More >> Silver Prices [http://www.silverpricestoday.cc/KITCO-SILVER/]
US manufacturing shrank at its quickest pace in more than 3 years in August and US construction spending lowered in July from the greatest amount in a year, the disappointing ISM index and construction spending info had been released yesterday.
These types of reports fire up further hope for investors that Ben Bernanke will launch QE. Gold rose 4.5% in August and is now concentrating on the $1,700 price level as soon as more, most likely probably the most since January, on conjecture that the Federal Reserve will add to its $2.3 trillion bond-buying strategy. Traders are awaiting the essential US employment info due on Friday for further signals on the poor nicely being of the US financial climate.
Bill Gross, the co-chief investment officer and founder of (PIMCO) Pacific Investment Management Co., manager of the world’s greatest bond fund, stated in a Twitter post yesterday that indicators that the European Central Bank may also increase actions to increase monetary improvement are “very reflationary†and mean that investors ought to “buy gold, TIPS and real assets.â€Â
Highs in gold prices since 1975 have usually been associated with growing real interest rates. Occasions when real interest rates fell in tandem with gold prices consist of 1987-1990 and 1996-2001. Even though real rates are have risen somewhat, they remain beneath their historical average and levels beneath 2% have nonetheless been supportive of growing gold prices.
The 2% real interest rate limit has served as an inflection point for gold prices. Gold prices had been in the doldrums from 1980 to 2000, when real rates stayed higher than 2%. While real rates had been volatile all through this time, gold prices continued to reduce even as real rates had been pretty unchanged.
Gold prices didn't move dramatically from 1980 to 2000 and had declining correlations with debt levels because GDP improvement was sufficient to mute fears about spending spending budget and deficit issues. The present monetary recovery has been also weak to support a continual rise in real rates above the 2% level which has acted an inflection point for gold prices. LOOKING FOR GOLD COINS, RARE COINS, SILVER COINS? Learn More >> GOLD COINS [http://www.silverpricestoday.cc/GOLD-COINS/]
With power and food increasing prices deepening and soon to influence consumer price indices, interest rates may have to rise significantly in order to restore real interest rates above 2%. This truly is with ex-Federal Reserve Chairman Volcker did in the late 1970’s - when he elevated interest rates to above 15% in order to shield the dollar and aggressively cope with increasing cost of residing.
It is unlikely that the Bernanke Fed could implement comparable 'hawkish' monetary policy nowadays. It is unlikely that they would as well as doubtful if they could - provided the appalling fiscal scenario and levels of debt in the US and international financial climate.
A ongoing succession of higher real gold prices above the increasing cost of residing adjusted high, or real record high, of $2,500/oz is probably till we see interest go back to more normal levels and zero % interest plans are supplanted by good real interest rates. My recommendation could be to purchase silver now, purchase gold these days. How High Will Silver Go? Learn More >> Silver Prices [http://www.silverpricestoday.cc/KITCO-SILVER/]
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