Does a QE create a "temporary" PM price spike?

tneig

Does a QE create a "temporary" PM price spike?

Never considered this concept before. The previous ones created a higher price but other factors overwrote that and the price still went down? I guess in theory, a dillution of the dollar value is a dillution but not in itself powerful enough to keep an elevated PM price high.

derryb

creating more money will create more investment demand. Most all investments benefit from QE, including PMs. However anticipation of upcoming QE is somewhat baked into current prices. The longer the announcement is delayed the more beating investments take that previously baked in the price. The announcement will fuel more buying. Last announcement was at Jackson Hole meeting two years ago. Jackson Hole meeting about to commence again this month.

jmski52

What derryb said.

As the realization sinks in, more QE will create a few more precious metal converts over time - but manipulation, management of perceptions and emotions will cause the prices of metals to move more than the act of money creation does.

Should QE cause PMs to spike? Yes. Will it? Probably not.

bronco2078

<< <i>Does a QE create a "temporary" PM price spike?

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It should , just like a scheduling a small fire at a refinery creates a gas price spike

MsMorrisine

it should

but if none of the money ever leaves the banking system....

Timbuk3

Sure does !!!