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QE3 and gold

derrybderryb Posts: 36,792 ✭✭✭✭✭
in Precious Metals
Buy gold before March

Why has gold been down?


"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

Comments

  • jmski52jmski52 Posts: 22,822 ✭✭✭✭✭
    What are some of the most liquid MBSs that he is talking about? Fannie & Freddie?
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • derrybderryb Posts: 36,792 ✭✭✭✭✭


    << <i>What are some of the most liquid MBSs that he is talking about? Fannie & Freddie? >>


    GNMA 30 Year
    GNMA 15 Year
    FHLMC 30 Year
    FHLMC 15 Year
    FNMA 30 Year
    FNMA 15 Year.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    The QE never stopped when QE2 officially ended in June of 2011. If the people need a smoke signal from the FED to get them
    moving again then a formal QE3 signal will help. But with M2 increasing by $900 BILL this year, untold hundreds of billions
    in revolving EU currency swaps that will never be paid back, and a> $100 TRILL increase in otc derivatives, I'd say we had QE3
    as well as QE4 and possibly QE5 already this year. But the public doesn't seem to buy it.

    Even if the FED broadcasted they were buying MBS's hand over fist, I wouldn't buy any. Mortgage-backed securities aren't
    really backed by anything and certainly not by a live mortgage or property. But we can all dream. Unlike something tangible that
    you can hold in your hand, or place your feet upon (ie a real property), MBS's can literally be worth $0 the day after buy them.
    After all, the majority are still otc derivatives without regulation, not marked to market, and with no real clearinghouse to efficiently transact them.
    I guess they are worth what the big banks, FED, and Treasury tell you they're worth.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • derrybderryb Posts: 36,792 ✭✭✭✭✭
    Think of QE as gambling money: You and I don't get to use it, we pay higher prices for our own investments (thanks to QE infusion), and we get to foot the bill if "they" lose. Win/win for somebody, guess who?

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • jmski52jmski52 Posts: 22,822 ✭✭✭✭✭
    The only time I would buy an MBS is with actual gambling money, and I don't have any money allocated to gambling right now.

    My cashflow will be pretty good now for the next couple of months, and I'm letting cash accumulate while picking off a Plat or three. I couldn't quite pull the trigger on any more ATB silver, and I'm holding back on a couple more 2011-W AGEs. The cash feels right, and I can't really tell you why. Maybe it's cohodk's influence.image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • cohodkcohodk Posts: 19,101 ✭✭✭✭✭
    imageimage


    Bud Conrad, is convinced gold will hit $2,000 in the first half of this year. If he is right, the opportunity to buy at today's levels will be fleeting


    I think he meant the opportunity to sell at that level would be fleeting.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • rickoricko Posts: 98,724 ✭✭✭✭✭
    Although I am neither an expert nor a fortune teller, I do believe gold will hit $2K before mid-year. Cheers, RickO
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