|
Here's a few reasons why we are very bullish on Gold and Silver. The Fed at its Aug. 10 meeting took a small step in the direction of providing more stimulus when it committed to increasing the quantity of money in the financial system by purchasing Treasuries as the housing debt the Fed holds matures. Last week, at its Sept. 21 meeting, the Fed paved the way for another much larger quantitative easing at an upcoming meeting later this year. The Fed may introduce a $1 trillion Treasury purchase program at its next meeting, on Nov. 3. Incorporating the theme of reflation into your portfolio may be beneficial. Key positive effects of reflation are likely to be seen in precious metals, commodities, and commodity-sensitive stocks. The dollar and the financial sector may be negatively impacted. Gold may be the most obvious beneficiary of the Fed's intentions. Inflation and a falling dollar tend to lift gold investment demand as a way to preserve value. Just think as Gold and the US dollar as having an inverse relationship. Gold prices made new all-time highs this week. This trend can continue as the dollar falls and inflation picks up. The potency of the reflation theme as it related to commodities can be seen in crude oil. Crude prices were up on the week despite the report of near record-breaking U.S. inventories. This is similar actions to the 70's inflation era. http://blog.wallstreetgrand.com/ . Wall Street Grand provides market moving news to the investment community via their market blog. Wall Street Grand also has the #1 Gold and Commodities newsletter following on the web.
To learn more about Wall Street Grand or to read any of their published articles on Gold and Silver make sure to visit their commentary page or click here: www.wallstreetgrand.com/SubmitNews.aspx .
Disclaimer: Wall Street Grand has not been compensated in any manner for this press release. Wall Street Grand is not a licensed or registered Financial Advisor. Wall Street Grand does not own shares in any of the mentioned companies. To read full disclaimer visit: www.wallstreetgrand.com/disclosure.html.
|
