Janet Yellen and the rest of the FOMC are playing ball with the ECB and BOJ, as they decided to cuttheir rate hike projectionsby half for this year.Their lack of tightening was a clear admission of weakness in the economy, and their attempt to "get off zero" in December will go on and prove to be a complete failure.
Precious metals SKYROCKETED higher as a result, along with the miners!
The other major central banks are juicing up, so why not the Fed, at this point, right? Still trying to save some face, though, they are projecting rate hikes for later this year, and were able to kick this can down the road. But as I've said in the past, it doesn't really matter what the Fed does, because they are damned if they do and damned if they don't, as far as their policy is concerned.
Stored up economic energy will be released one way or another, and will overwhelm their artificial manipulation. Aside from last week's $50 takedown in gold, the bullish momentum for real money has commenced!Watching gold shoot higher by 2% today -- along with the miners -- as an immediate reaction to the Fed announcement was exactly what weshould be able to expect from gold.
Gold is acting like gold, and it should be a reminder for anyone who has been bloodied up by precious metals to not stand on the sidelines for too long.
As bad as the bear market was, the bull market will be that much more spectacular.
It's not just about the fear trade – there is much more upside to owning gold.
Here are 7 reasons why you should be saving in gold monthly:
- Legacy wealth. Gold is something you can safely store away, knowing that it is something of great value that you can pass on to your children and your children's children.
- Portable. I think it's important that if you need to, you could easily carry or move your wealth to a different region. Just to give you an idea, $200,000 in gold is about the size of a VHS tape. Your fiat currencies are typically tied up over the weekend and on bank holidays; in fact, even if you wanted to physically get your cash, you couldn't unless you gave your bank a 72-hour notice for withdrawals of over $5,000.
- Financial insurance. When it all hits the fan, be that a government or economic collapse, at the end of the day, gold survives. It still has value in the new world. It also makes for a great "start over fund." For the reasons listed above, it won't go to zero, and it's private money.
- The currency printers are hoarding it. When the most powerful group of people in the world -- the central bankers -- desire to have 1 asset, then that alone should get your attention. Central banks print the currencies that the masses treat as a store of value, and those central banks buy and store physical gold – not silver, not houses, not oil.They own gold! If it is good enough for the masters of this world, then it's good enough for me.
- It can't go to zero. Zero value for gold isn't an option.It hasn't ever happened and never will. The process to get a 1-ounce gold coin to you has hundreds of man hours behind it, maybe even thousands, if you consider the full operation of gold exploration, production, refinement, and delivery.
This is the entire point of saving your wealth: you save to not lose. I understand that you can measure gold vs. the dollar, or gold vs. oil, and that its price will fluctuate, but the value in gold itself does not change.
- It has a history of being money, an independent unit of account that is the same no matter where it was mined or how old it is. It is a constant measurement of value; you can take a gold piece anywhere in the world and it have value. This is much different than a fiat currency, because once outside of your nation's borders, a currency may not be generally accepted. You also have thousands of fiat currencies that no longer have any value, like the U.S. Continental or the Confederate States of America dollar.
- It’s lawsuit-proof. Not technically, but the fact is no one knows how much gold you have; it is a private matter. Gold is "off the books" when it comes to financial accounting.
I just wanted to remind everyone today that savings is important, and to be sure not to overlook gold for too long because this upward price action is starting to build some real momentum.