On Wednesday, the Federal Reserve announced it would keep its rates low for a while to allow the economy to recover. The thinking behind the announcement is that with lower rates in effect, businesses would be more inclined to invest, thus stimulating economic activity. The day after the announcement, gold bolted $41.40 to $1,340 an ounce, and silver $0.87 to $20.65 per ounce. Although precious metals are in a customary slow phase as the summer months take hold, investors clearly saw that maintaining a cash position would yield them little or no interest, so they jumped on the opportunity to pick up precious metals at low prices.
Published in Gold Investing
Wednesday, 23 October 2013

Uncertainty Driving Gold Markets

With the Federal Reserve in a state of transition, with new leadership coming to the helm and the clown show we call Congress taking the country to the brink of a catastrophic default, gold prices are on a tear this week. Gold is up $48 an ounce for the week so far, completely erasing losses for the month; and the uptrend looks to finish the week out on a high note. 
Published in United States Economy