The Fed has decided not to taper their quantitative easing policy. The reasoning was because their goals have not been achieved, so we can look forward to more stimulus until the unemployment rate reaches 6.5%.
This news was not well received by foreign dollar holders, but the stock market reacted favorably.
Gold and silver rocketed upward in a 10 minute span to $1,364 and $23, respectively, punishing those short term speculators who bet last week on Goldman Sach’s prediction of $1,000 gold. The morning’s lows were $1,293.80 and $21.17.
So there it is, no more guessing – QE to infinity, devaluing the dollar even more on a monthly basis. The long term fundamentals have not changed, just the short term perceptions that somehow this group of bankers, in secret meetings, can determine and guide the direction of the economy through artificially low interest rates and unlimited credit creation.
The consensus of opinion on metals is the worst I have ever seen in 40 years and is reflected in an industry wide slowdown in volume.
In my opinion, this is a buy signal. Keep the faith.