You guys all know I am long silver long term but does anyone feel
like this is gonna sell off tomorrow?? For the first time in a while I was able to sell my March 35 calls right near the high of the day and then bought the 35 puts for 3-17. I just got a feeling that the infusion is around 400b and Bernanke makes reference to no more qe3. I have a number of junes so if she runs I am happy but the short term (tomorrow) worries me. Anyone?
Global Quantitative Easing has gone into overdrive by printing trillions of Euros, Pounds, Yen, and Dollars. The inflation strategy is confirmed, with Eurozone bankers spending 130-billion-euros ($172 billion) to bailout the Greeks with a rescue package, while adding over a half trillion Euros to raise the reserves at major European banks. Now, Eurozone financial ministers need to spend trillions of Euros for sovereign debt relief to bailout Portugal, Spain, and Italy. Last week, China lowered the reserve requirement on banks in order to increase bank lending and stimulate home sales. In addition to all of this, the Bank of England and Japan have openly stated that they are printing hundreds of billions of Pounds and Yen to stimulate their economies. To sum up the extent of this massive quantitative easing let me quote John Paulson, billionaire Gold investor and hedge fund manager, who said on Friday, “Gold is the best hedge against currency debasement as countries inject money into their economies,” and “The metal serves as the best long-term alternative to paper currencies.”
I am seeing an increasing amount of government quantitative easing on the way and I have changed my recommended investment diversification. I am less concerned by deflation, because I realize that global inflation is coming within 18 months to 2 years. Inflation will drive up the value of Silver faster than Gold. With the silver/gold ratio now at 51 to 1, I have increased the silver percentage in my recommended investment diversification to 40% from 30%.