G20 set unleash $2 trillion simulus by APRIL...Silver & Gold to go parabolic
Did you see the move in Silver today? It dropped fast and has been surging off its 150 MA...Gold did the same
Silver made a powerful stage 2 breakout above its 150 MA and that is holding
Gold also in stage 2 breakout above its 150 MA
WHY is it holding?
Perhaps it because the G20 plans to release up to $2 trillion in worldwide QE3 by April..
Silver to go parabolic as world keeps printing money Gold also.
Stage 2 breakouts lead to powerful long lasting rallies for multi months
Prepare for new 52 week high for SLV & GLD
The G20 is racing to line up massive international resources worth nearly $2 trillion - including existing and new funds - possibly by late April. That would help to draw a line under the financial crisis that erupted in 2008 when Lehman Brothers collapsed, spawned the deepest U.S. recession since the 1930s and now has engulfed Europe's deeply indebted countries.
It would mark their boldest move since they ploughed $1 trillion into their economies three years ago to combat recession. Many advanced economies are still flooding markets with cheap money to combat weak growth and prevent financial contagion.
The proposal is to combine Europe's temporary and permanent bailout fund to create a 750 billion euro ($1 trillion) war chest. This would open the door for other G20 countries, like Japan and China, to meet the IMF's request for $500-$600 billion in new resources, on top of its current $385 billion in funds.
Put together, this would total almost $2 trillion in firepower. The G20 finance chiefs next meet in Washington in late April and they showed they will not ease pressure on Europe by giving it a signal now that new IMF money is in the bag.