Welcome to Money Metals Exchange's weekly market wrap podcast. Helping precious metals investors during these treacherous times. Now, here's this week's market wrap with commentary and analysis from the fastest growing precious metals dealer in America, Money Metals Exchange.
Welcome to this week's market wrap podcast, I'm Mike Gleason.
Markets often move counter-intuitively. They can zig when you think they should zag, and zag when you think they should zig.
A case in point is Thursday's market action in the precious metals. Instead of rising on the Federal Reserve's announcement of more Quantitative Easing the day before, they fell. Silver got whacked especially hard, falling nearly 3% and currently trades at $32.60 an ounce. Gold settled back down into the high $1,690s.
You'd think silver would have moved in the opposite direction. It's hard not to interpret the Fed's latest round of QE as being damaging to the value of the dollar and bullish for precious metals. The Fed will buy $45 billion per month in U.S. Treasuries – That's on top of its previous commitment of $40 billion in mortgage-backed securities, for a total of $85 billion per month. The Fed's balance sheet is set to expand even further to an astonishing $4 trillion in 2013.
Talk about excess leverage! Far from ensuring stability in the markets, the Fed is transferring and concentrating risk on its balance sheet, forestalling the day of reckoning. But make no mistake, the Fed is putting all holders of dollars at greater and greater risk with each new vow of asset purchases paid for by dollars created out of thin air.
In the Fed's new bond-buying campaign, it won't be "sterilizing" its purchases, meaning offsetting them with sales of short-term obligations. Some are calling this "unsterilized" program "unsanitary" – not to mention unsound as monetary policy. The Fed is effectively monetizing the government's debt, something Fed Chairman Ben Bernanke previously vowed he wouldn't do.
Nobody can predict what the markets will do with certainty, especially on a day-to-day basis. We're bound to experience more counter-intuitive takedowns. And we'll eventually see moves to the upside that surprise you with their ferocity and persistence.
The name of the game in volatile and unpredictable markets is diversification. Most investors aren't well diversified. They're overexposed to dollar-based assets such as bonds and equities. When conventional markets zag, it's often the case that gold and silver zig. That's why it's important to maintain a core position in them. And to keep accumulating precious metals on a regular schedule or when you are able – especially when the market puts them temporarily on sale.
Now, for a product note.
Here at Money Metals Exchange, we are getting in a large batch of 1/4 ounce Gold Canadian Maple Leafs. These coins are very lightly scuffed, but can be obtained by our customers with deep discounts. Premiums above the gold spot price are in the 5 to 6% range, which is a fantastic price compared to their U.S. Mint counterparts, the 1/4 ounce Gold American Eagle.
We've had these 1/4 ounce Gold Maples before and they sold out very quickly – so don't hesitate to pick up the phone and grab some if you are interested. Just call us at 1-800-800-1865.
Generally speaking, fractional gold coins carry a higher premium over the spot price, which is why value investors usually shy away from them and prefer the 1-ounce size, where minting costs are a smaller overall part of the coins' cost. However, when good deals like this come along on widely recognized fractional gold coins, it makes some real sense.
For pricing and availability on these 1/4 ounce Gold Maples, and other product specials, give one of our knowledgeable and no-pressure specialists a call at 1-800-800-1865.
Well that will wrap it up for this week's market wrap. This has been Mike Gleason with Money Metals Exchange reminding you that we remain fully committed to getting you the most value for depreciating dollar... with speed, with privacy, and with top notch service.
Thanks for listening and have a great weekend everybody.
Thank you for joining us for this edition of the Money Metals Exchange Weekly Market Wrap. Be sure to come back next week, and don't forget to subscribe to our weekly podcast through iTunes. For answers to all of your questions, or to discretely and securely buy or sell gold or silver coins, bars, and rounds, call 1-800-800-1865. Our knowledgeable and no-pressure specialists are standing by between 7:00 a.m. and 5:30 p.m. mountain time, Monday through Friday. Visit us at www.MoneyMetals.com or call 1-800-800-1865.
About the Author:
Mike Gleason is a Director with Money Metals Exchange, a precious metals dealer recently named "Best in the USA" by an independent global ratings group. Gleason is a hard money advocate and a strong proponent of personal liberty, limited government and the Austrian School of Economics. A graduate of the University of Florida, Gleason has extensive experience in management, sales and logistics as well as precious metals investing. He also puts his longtime broadcasting background to good use, hosting a weekly precious metals podcast since 2011, a program listened to by tens of thousands each week.