Right, wrong or indifferent, today's Fed decision and press release could be a momentous near term market moving event.
It's likely the market is expecting a cryptic, non event whereby there is no "Tellin' by Yellin". They expect words expressing the economy is moving along but at a slow pace and we stand by our position intending to start to normalize interest rates in the summer. But, if the economy reflects any changes to full employment and inflation, we stand ready to remain at zero interest rates for an extended period of time.
ANY tell towards a rise will create a negative near term risk for PMs, but would be followed by A return to the upward slope started 2 months ago. World Coinetary policy is on amaddening road of a self inflicted flesh eating bacteria, destroying not creating wealth, and IF no one believed there was a problem, why would the large Central Banksters be accumulating Gold? I don't ever plan on taking a wheelbarrel full of fiat to the grocery. Much rather have a couple of mercury dimes available for pizza and soda.
What if FOMC doesn't elude to raising, and just the possibility and leaving open the door. Then, come April, they leave all alone. Come June they raise by under a 1/4pt or leave all alone?
OR, what if they actually go negative?
There are several possibilities.
Even they admit, they are in unchartered waters.
If the DOW is now 17,200, and you are suggesting to buy a DOW short vehicle, why would your target on the DOW be 17,500?
Over the next 30-60 days, no one today can accurately predict the dips and pops.
Over the course of the next 2-3 years, Gold and Silver should make sustained moves.
NOTHING goes straight up and it's not likely we will wake up one morning with PMs up 50% overnight.
I think it's safe to say, a monthly purchase of physical should be continued.
It's also wise to consider, miners and streamers are essentially the equiv of a 5X the move of physical. It's a poor man's derivative. And timing the market is shooting #$%$,which has a bit of math to it. So either average in, consistently OR if you are strong believer in your T/A--then some will have you believe, we should have a lull for about 30-45 days to gather yur powder for the next move,by May.
Miners and of course, streamers have been outperforming EVERYTHING.
ON a day like today, AU and AG are either down a bit or near flat.So why the disconnect?
Central Banksters ARE eating up supplies of gold. That is fact.
But, they do NOT want outright panic so banksters are shorting electronic PMs. That, they can control.
But, it's very difficult for them to control ALL MINERS.They can short GDX and other mining ETF plays but it's getting out of control. So, electronic traders are gobbling up the miners and physical --The IAU fisaco is proof the genie is getting let out of the bottle.
Search for the article and read!
The best we have to muster for our system is either Billary or the Trump card?
In one felt swoop,ALL of China's problems are gone.
Monday back to 11% growth,$100 per bar oil prices, CPI up 4% and revisions to GDP upwards of 4% right?
COnstruction Boom ahead for CHina,right?
No more problems--except POOF. Then you wake up.
Another set of topics causing some enlightenment in the markets;
Central Banksters are now all mentioning "alternatives" to our currency. I heard Janet yell about it and I just heard Jim Bullard mention the same topic.
I know of 2 alternatives;
Gold and or silver, and the other, scarier one.
Search on Blythe Masters.You remember her, right? She was at the center of a conspiracy theory for years regarding London Gold fix. Search to see what she's up to these days.
The second part of the discussion ( assuming what I wrote to be true), with the sector up about 25% since end of January,
With AU and AG up about 12-15%, and individual companies up 50% and more, is the move justified? Or, did the sector move too much to quickly?
Will it continue?
Some say the deep drop over the past 4 years was WAAAY to steep and this move is merely correcting.
So, what looks like a price independent of the price of AG, actually is not and it's correlated.
Then of course, everything we have been saying for the last 10, 15 years which we expected to happen, "MAY" finally be getting closer.
And, don't think for a minute that the Trump card hasn't put the fear of something into the markets.
As have negative I rates, and more of the same honest data going into UE rates and GDP etc etc.....
Just some opinions.......
I think the first part of the answer is, take a look at the "mining" sector in AU and AG.
Even though a streamer, it gets lumped in with that sector.
The sector has been one of, if not the best performing in the market.
Take a look at others,such as CDE.
The next question, is why, then, will it continue?
He is the dog in the dog and pony show.
Says the Fed is NOT even talking about negative interest rates, yet they are including a model in the stress test.
Spout the hawkish balance, except he has no bullets in his jism. Can't vote.
Talk about transparency?
We have a broken system and he is just adding fuel to the fire.
My collection of Trump Cards will be worth a fortune.
As will my frozen Veal chops. Runnin outa room in my freezer.
Will go to Home Depot and buy another freezer with about 26 silver dollars.
We must be careful what we wish for.
LOL.....all the way to the bank.
But, I got my Trump card!