Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Gain with Oil
By: Chris Mullen, Gold Seeker Report

Gold Stocks Remain in Downtrend but Uranium Stocks on the Cusp of New Bull Market
By: Jordan Roy-Byrne CMT, MFTA

Sunsets in the Land of U.S. Dollar Hegemony
By: Michael Ballanger

Precious Metals Sector: It’s 2013 All Over Again
By: Przemyslaw Radomski, CFA

Rugby Initiates Drilling at San Antonio Gold Project, Colombia
By: Rugby Mining Limited

Merk Research - US Equity Markets
By: Merk Research

Silver Looks Poised To Move Soon
By: Hubert Moolman

Which Precious Metals Are Likely To Be Better Investments During The Next Market Crash?
By: Steve St. Angelo

Wall Street Keeps Cool As Tariff Threat Grows
By: Rick Ackerman

Silver Guru Video: “The End of Empire and End of Fiat Currencies”
By: GoldCore


GoldSeek Web

QE will return to hike gold and oil prices predicts Albert Edwards

 -- Published: Friday, 31 July 2015 | Print  | Disqus 

By Peter Cooper

What could revive gold and oil prices from their current cyclical lows? It was quantitative easing that pushed prices up after the last global financial crisis. Is it about to happen all over again?

Central banks in the Western world have set the scene for an ‘even bigger version’ of the 2007-2008 global financial crisis, Societe Generale’s bearish strategist Albert Edwards said in a research note yesterday.

Chinese stock market crash

Mr. Edwards said that China’s intervention to stabilize its volatile stock market was part of a larger global story, in which ‘rock bottom’ interest rates and large fiscal deficits in the western world were pushing the global economy towards a fall.

‘QE will be stepped up to such a pace that you will hear the roar of the printing presses from Mars’ he said. ‘I have not one scintilla of doubt that the western central banks have set us up for an even bigger version of the 2008 Great Financial Crisis.’

This form of money printing has been a mainstay for several major central banks in the wake of the last crisis, with money created to buy assets like government bonds, helping to inject liquidity into markets with the aim of stimulating the broader economy.

Gold prices

Given his forecast step up in money-printing, Mr. Edwards said that gold, which tends to perform well during periods of high inflation, was a ‘must-have’ safe-haven investment. By extension oil or black gold would also recover in price as it did in 2009.

While Edwards forecasts a prolonged period of ultra-easy monetary policy, many investors expect an interest rate hike by the US Federal Reserve as early as September.

However, this will be the apple that finally tips the cart over in the view of contrarians like Mr. Edwards, and he is not alone in that belief. Both equity and bond markets are not going to take higher interest rates kindly.

Indeed, it is partly the anticipation of these rate rises that kicked the cart over in China on Monday with an 8.5 per cent crash on the Shanghai stock exchange. This may just be a dress rehearsal for a Wall Street Crash in October, the traditional month for meltdowns.


Mr. Edwards point is that central banks will have no other option than QE as a reaction because the classic policy response of slashing interest rates is not open to them this time around as rates are still so low.

Money printing is most immediately reflected in rising commodity prices. That is to say having more money in the system causes price inflation, and at the first whiff of such inflation both gold and oil prices will soar from their current lows.

Mr. Edwards has made some good and bad calls in the past, this one looks a winner.

| Digg This Article
 -- Published: Friday, 31 July 2015 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2018 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.