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Thinking of buying?

14 Sep

Trends

Helicopter Ben’s (Bernanke) notice of Quantitative Easing this week carries with it consequences for the average American, and indeed the entire world’s economies. Past QE trends, however, might just tell us something.

At the time of QE1, the November 25, 2008 price of Gold was $813.10, while the price of Silver was $10.23

The following month saw those prices increase to,

December:   Gold: $846.20                Silver: $10.38

Increase: Gold: 4%      Silver: 1%

January:   $890.70  – 9%             Silver:  $11.85 – 14%

******************************************************************

During QE2, the November 3, 2010 price of Gold was $1,355.80, while the price of Silver was $25.08

The following month saw those prices increase to,

December:   Gold: $1,414.50               Silver: $29.38

Increase: Gold: 4%     Silver:  17%

January:    $1,415.60  – 4%               Silver: $30.81 – 23%

*******************************************************************

Now that we are about to see QE3, and the price of Gold was $1,737.90 and Silver was at $33.69, splitting the difference, this would translate to gold being around $1,850.86 next month, while Silver should be at, or near $39.92. 

In reality, gold closed this afternoon at $1,771.50 and Silver is at $34.78.  The past two QE’s have taken place during the month of November.  Silver moved much more than gold did.  So, if you think you are going to get rich off of the QE alone, think again.  This does not mean that a collapse, war, or other civil disorders will not drive these prices through the roof.  Neither does it mean that Gold or Silver is anything but a good investment.

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2 Comments

Posted by on September 14, 2012 in Sons of Liberty

 

2 responses to “Thinking of buying?

  1. Wildflower

    September 14, 2012 at 8:43 pm

    am putting my faith into metal working tools, tradable victronix or leatherman tools, primers and other supplies to ride out the storms

     
    • soffitrat

      September 14, 2012 at 8:51 pm

      You will, no doubt, do well. Better than most.

       

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