The one you never seen before
--Rolling Stones
Yesterday the Fed announced its intent to purchase over $1 trillion in treasuries and agencies. Their objective is to suppress interest rates and breathe some semblance of life into the housing market.
Lest you were unaware, the Fed will create those trillion+ greenbacks out of thin air.
Our central bank has now put the destruction of our currency front and center. Foreign dollar holders are now on notice that the greenback is going down.
Predictably, the dollar was smoked on the news. Just like that, it fell now sits on intermediate term support.
Gold did an about face as well. Yesterday morning it was trading drekky around $880. Today it closed at $960.If the dollar knifes thru USD 81-82 with relative ease, then things could unravel rather quickly.
position in gold
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/gold/t24_au_en_usoz_2.gif)
2 comments:
I'm not much of a gold bug, although I do have some bars and eagles, but I noticed that Pt has collapsed relative to Au. I keep meaning to look into this, but I always get sidetracked.
I'm moving away from paper gold and towards bars/coins like you. I look at gold as 'real' wealth--the kind that hopefully I pass down to future generations. Can also be viewed as insurance against catastrophe (USD, etc).
Have not done anything w/ platinum. Gold focus w/ some silver mixed in.
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