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‘Helicopter Yellen’ Sends Stocks, Gold, Silver Soaring
‘Helicopter Yellen’ Sends Stocks, Gold, Silver Soaring
Gold, silver and stocks surged overnight and today after the Fed maintained their ultra dovish monetary policy stance. The risk to markets of an early hike in U.S. interest rates eased leading to a fall in the dollar after the release of minutes of the last Federal Reserve policy meeting.
‘Helicopter Janet’
World stock markets roared their approval of reassurances that the U.S. Federal Reserve will not raise interest rates any time soon. Capital came flooding back into almost every asset class and the dollar fell sharply.
Gold jumped over 1% to $1,224.30 - at a two-week high, while silver surged 2% on the Fed minutes.
The dollar, jolted lower, while gold, silver and oil and commodity prices rose. The other precious metals also caught the updraft. Silver surged 2% to $17.646 an ounce, platinum was up 0.5% at $1,283.20 an ounce, and palladium was up 0.4% at $803.75 an ounce.
Gold in U.S. Dollars, 5 Days (Thomson Reuters)
There were big gains on Wall Street and for Asia stocks, and European shares duly followed suit as Britain's FTSE 100, Germany's DAX and France's CAC 40 rose 0.7%, 1.2% and 0.8% respectively in early trading.
Market participants have interpreted the tone of the FOMC minutes as suggesting that U.S. interest rates could remain lower for longer than most expected, causing the dollar to weaken.
Observers had been worried that the minutes from Chair Janet Yellen's Fed could lead to market volatility and further sharp stock market falls. ‘Helicopter Janet’ is confirming the belief of some market participants that she will continue the ultra loose monetary policies of her predecessor ‘Helicopter Ben’ and of course Alan Greenspan before them.
Bond yields throughout the world, which have plunged during years of cheap funding from the Fed and the world's other major central banks, hit new record lows.
Ireland’s bond yield hit a record low of 1.63%, despite Ireland still having important structural issues that have yet to be addressed and significant debt challenges.
The minutes showed Fed officials were wary about the dual threats of a stronger dollar and recent wobbles in the world economy as they desperately seek an eventual exit from record low rates.
Currency debasement continues in the U.S. and with other central banks - banks, and indeed markets appear hooked on the cocaine of ultra loose monetary policies and cheap money.
A rise in U.S. interest rates will be bearish for stocks, bonds, property and the already struggling U.S economy. Stocks already appear overvalued and ripe for a serious correction.
The U.S. recovery is exaggerated and the health of U.S. consumers and the fundamentals of the U.S. economy remain weak. An economy that has over 55 million or nearly 20% of the population on food stamps is by its nature very weak and vulnerable.
S&P 500 - Jan 1985 to Oct 8, 2014 (Thomson Reuters)
For more than 5 years now the Fed has been ‘jawboning’ markets and threatening to rise interest rates and return to more normal monetary policies. We have consistently warned that it is important to watch what central banks do, rather than what they say - as they frequently conflict.
Indeed, even what they say can conflict and it is often dissembling and some would say designed to confuse and mislead market participants.
Copious amounts of monetary whiskey have been downed in the global economy and yet the recovery remains weak at best. The mother of all monetary hangovers awaits us all and will likely manifest in stagflation and sharply higher inflation.
This underlines the vital importance of having an allocation to gold in a diversified portfolio.
Gold will maintain its purchasing power in the coming years, as it has always done throughout history.
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GOLDCORE MARKET UPDATE
Today’s AM fix was USD 1,227.50, EUR 961.99 and GBP 757.67 per ounce.
Yesterday’s AM fix was USD 1,220.00, EUR 963.51 and GBP 758.38 per ounce.
Gold climbed $11.90 or 0.98% to $1,222.50 per ounce and silver rose $0.21 or 1.22% to $17.40 per ounce yesterday.
Gold in Singapore eked out small gains from $1,223/oz to , before shaving gains to trade down 0.2 percent at $1,219.30 by 0036 GMT.
Silver in U.S. Dollars, 5 Days (Thomson Reuters)
Yesterday, the U.S. Fed released minutes of the Sept. 16-17 meeting, that highlighted fears that a rising dollar could impact the fragile U.S. recovery and noted the economic turmoil in Europe and Asia (see above).
More signs of the very difficult economic situation in Europe came out of Germany today where German exports slumped by 5.8% in August, their biggest fall since the height of the global financial crisis in January 2009, as the sanctions and tensions with Russia took their toll.
It is yet another sign that Europe's largest economy is faltering amid broader euro zone weakness and crises abroad.
The Bank of England kept interest rates at a record low 0.5% today and kept printing money for bond purchases to the tune of £375 billion a year.
The risk of a new recession in the euro zone and caution from the US Federal Reserve suggested a first increase in UK borrowing costs might be delayed.
The bank's Monetary Policy Committee left its bank rate at 0.5%, the level at which it has sat since the worst of the financial crisis over five years ago.
Record low interest rates in the UK and globally remain positive for gold.
RECEIVE BREAKING NEWS AND UPDATES HERE
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Tomorrow is one of my big two investment days each year because I invest so differently than most folks do. I have the MOON coin show tomorrow. I will bring my loupe and have my books packed and ready to go but I doubt I will need it all because I know exactly what I am looking for. I will be lucky to get one shot at one coin which may or may not be there. If I see more than one from that country then I will buy them all if I can swing it.
I will say this much, the sellers already know what they have. So do I. How long do you want to hold it? Buyers are as rare as the coins are. There could be some fireworks but more than likely nothing will happen besides me buying some MOAR silver dimes.
The whole system is based on fraud. All of it. Value, real stuff, is what matters. Hedge accordingly.
What suck SO bad is buying silver at $45. Filthy criminal FED and banksters have used the PAPER price to force METAL down to $17. Wish I had a fucking JOB so I could buy more. How I hope they get crucified when 300 million are out of work.
Not sure which roaring stock market is being referred to here. This prediction for an accelerating decline is right though...
http://www.globaldeflationnews.com/sp-500-indexelliot-wave-update-for-we...
yes, but can this fat bitch fit down a chimney like someone else I know?
Soaring? Wake me up when they go hyper light speed!
a coupla of the small caps i trade are approaching 5 year support. i have to start buying.
My great friend and former lover, Ms Budgie Twitters, has a BUY order in at -350 and to take advantage of the volatilititty,
and has adopted a new stragety of: J B T F D / J S T F S.
The Shorts are finally enjoying a bit of a comeback, long long overdue, but would still, if they now choose to close, buying back nearly all of them at a significant loss.
Buck the trend. Sell. Make a few bucks and wait for the BIG dip to buy back.
The sky is falling the sky is falling.
Free money is falling from the sky free money is falling from the sky.
If your watching the market today, its down 266 at 12:45 pm. Shit is soon hitting the fan. Thats why Gold is finally rebounding. The maket can only take so many up 200 one day and down 200 next before the support fails to hold.
Looking at gold now it's up a whopping $3.50 and the DOW is down a bit more than 300. I don't consider $3.50 soaring...
bye the fcking dip, dip, daa dipp dipp dipp, Oh baby, you know what I like
"When you dip I dip we dip"
Look carefully at her right hand, she's slipping some of those greenbacks into her shirt.
Glad I bought a couple of those Italian Job gold bars for E300,000. lol Just this week Marketwatch was saying the gold bull market was dead.
It's annoying reading the word "soaring" and then look to see Silver increased $0.08 today to $17.49
Only paper price.
The reason they use the word "soaring" is the Fed minutes came out after the Comex close yesterday. So it has soared from that point. Today's close saw gold up $19.30 @ $1,225.10. Silver closed at $17.43 up 36 cents.
Since today's close, gold is up 80 cents and silver up 1 cent.
Now you know.
I never asked why, just said it was annoying.
If you knew why it wouldn't annoy you.
Agreed.
Why, this very morning I noticed my lawn is soaring toward the sky.
Unfortunately deflationary pressures are just too great.
For all the talk of some people about the Fed's master plan for world dominion, to me this latest episode looks like reluctant but very prompt capitulation from the Fed to the addictive behavior of the markets, or banks, or whatever. Clearly they wanted to do something else and clearly they do not dare carry through with their intended plans. They aren't nearly as in charge as people think they are-- which itself has disturbing connotations no matter what theory you subscribe to.
Is it really Yellen's doing, or are we just seeing the return of volatility? Those wild triple-digit moves became more commonplace prior to the 2008 issues too.
I think the markets are so hyper-sensitive to everything that they're going to start swinging wildly no matter what Yellen says or does. There are plenty of other things out there to scare the markets besides Yellen's blatherings.
It's a sign of increasing instability when the markets start behaving this way. Whether they are reacting to Yellen, or just using her as the excuse for the move, is what I'd ask.
Either way, when the market starts swinging like this, trouble is ahead.
Agreed, plus the herd is getting fairly aligned. Once the herd changes direction, it will act as one...
Yep, this is the sort of thing you see right before a major decline...once that herd gets moving, it takes on momentum of its own.
Depends on the weather...
And the forecast is: more widespread Turkish Kurd rioting.
Erdogan either starts the open slaughter of Kurds now or he's finished. He may be finished anyways - the Kurds are pissed.
And then there's that messy business of the U.S. bombing Kurds rather than ISIS in Kobani.
Silver may still fall further. You're only going to see gold and silver reach their full potential when this all unwinds, but given that the Roman Empire was able to keep this sort of Ponzi scheme going for hundreds of years, there's nothing to stop the central banks doing the same thing.
However, I think peak oil (yes, it's real, and just a few years away from becoming obvious to all) and global warming (give it up, deniers and antiscience fools) will upset the apple cart long before then!