GOLD PRICE AWAITING THE FED
The Fed is poised to decide if rates will go higher or if the rate hikes will at least pause for now.
Yesterday the metals were down, which indicates the market was betting on higher rates today. However today the prices are right back up. So, the net effect is -no change in price.
I would think a pause should send prices somewhat higher this week.
It is a forgone conclusion that if there is another rate hike, it would likely be the last. Many economists are looking for rate cuts later this year. This is all positive for gold and silver.
It is interesting to me that when gold was well over $2,000 an ounce and silver was $26 an ounce, my phones rang off the hook.
Now with the pullback in both spot prices and premiums people are just sitting on the sidelines.
This is what seems to happen every time.
I get it. The price drops so no one sees the urgency in doing anything quickly. People assume they have all the time in the world and might even see lower prices. I can’t say I know with any certainty what will happen tomorrow or the day after or the day after that.
I do know without exception that those same people will buy if the prices go up substantially. I see it time after time. It is human nature not to act when things are quiet and to rush in when we might be left behind by rising prices.
I like to use these quieter times to be mindful and try to scoop up some better priced gold and silver. Not only is spot price lower than a few weeks ago but the over spot premiums are lower also. That’s two good reasons to pick up some bargains.
I just bought several thousand ounces of silver and added more gold and platinum to my personal inventory. I think you would be wise to do the same.
Think about why everyone was so concerned a few weeks ago, months ago or even a year ago.
Have any of the problems been solved?
Have the Banks suddenly become more liquid? What changed? Nothing! The government stepped in and paid off ALL investors in the failed banks to give the appearance that everything is under control. They did not change anything; they did not put any safeguards in place. Do you think they can bail out every depositor when more banks go under? I doubt it.
They not only paid off the “INSURED” accounts of $250,000 but paid off every account regardless of how many millions there might have been deposited. I guess that works a couple times on banks worth $120 million. What happens if a big bank gets in trouble. Can we afford to pay off depositors to tune of Trillions of dollars?
Seems like no one thinks twice about a trillion dollars anymore. Don’t worry the new IRS agents will squeeze you to raise the money.
Has the corruption and give aways to China and the Ukraine stopped?
Has anything in government become more capable? Is the President more concerned about letting Trans activists show their breasts at the White House than taking care of Vets or crime or any of a million more important problems?
Has the threat of a digital dollar gone away?
The White House finally admitted that China has in fact set up a spying headquarters in Cuba. But don’t worry, they don’t think it’s a big deal. Where’s JFK when you need him?
My point is this.
Nothing has changed for the better. Free speech is dying, political adversaries are being framed and attacked. The banking system is still a mess, and you are being distracted. The same concerns you had a month ago are still here. Things just keep getting worse.
So, if you were lulled into forgetting your concerns you better think again.
Use this time to look at your portfolio.
If I can’t beat any legitimate price, I’ll give you a free Silver Eagle
- Nick Grovich