What does qe3 mean for silver

Commodities are set for the longest run of weekly gains since The Fed decision is fuelling expectations raw-material use will rise. It is set for a 2. Improving the U. However, the scale of the open ended monetary commitments suggests the Fed is worried about another Great Depression and an economic collapse.

This is the frightening vista we have been warning of for some time. It means that should the US economy enter a recession and or depression, which still seems very likely, that the Fed will continue printing money and debasing the dollar thereby leading to dollar devaluation and inflation - potentially virulent inflation on a par with or worse than that seen in the 's. We had long said that QE3 was inevitable - the question was when rather than if. The "open ended" nature of this new round of QE as enunciated yesterday means that the Fed could if it wished or believes it is necessary print unlimited quantities of dollars.

The consensus continues to be that Bernanke and the Fed's actions in addressing U. When asked how high the price of gold may reach, he responded that there is no ceiling for the precious metal, because there is no limit on how much money will be printed. On Thursday, the central bank proved it is willing to do whatever it takes to prop up asset prices in an effort to cause a wealth effect among consumers and spur a recovery.

The Federal Open Market Committee launched yet another quantitative easing program. Many fund managers are still convinced the U. One of them, Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, does not expect the Fed to act this month. He is not expecting a recession, but admits he has become more defensive. Business News Updated. By Edward Krudy 5 Min Read. People wait in line to enter a job fair in New York August 15, Average returns of all recommendations since inception.

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