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 Weekly Wrap-Up: Gold and Silver Fall Almost 1% on the Week
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 6 22 2018
By: Ira Epstein

COT Gold, Silver and US Dollar Index Report - June 22, 2018

Gerald Celente: Why You Still Need Guns, Gold, and a Getaway Plan...
By: Mike Gleason

A Trade War Won't Be Good for the Dollar
By: Peter Schiff

Cheap Gold Stocks Basing 2
By: Adam Hamilton, CPA

3 Amigos (SPX/Gold, Long-term Yields and Yield Curve) Updated
By: Gary Tanashian

Sane People Absolutely Know Better!
By: Gary Christenson

How Long Can This Last?
By: Arkadiusz Sieron

Housing Bubble Pathologies, Part 2: Fewer Babies And More Stressed-Out Renters
By: John Rubino


GoldSeek Web

Gold and silver prices jump as Q4 GDP drop points to more money printing from the Federal Reserve

By: Peter Cooper, Arabian Money

-- Posted Thursday, 31 January 2013 | | Disqus

Gold and silver prices jumped to their highest levels in three weeks, shrugging off a very untimely shift by investors into equities over the past few weeks, on news that US GDP fell in the fourth quarter. That immediately suggested the Fed may have to ramp up its money printing again.

Silver is now up seven per cent in January at just over $32 an ounce while gold is back up to $1,680. It was a spectacular price reversal after a difficult month for precious metals.

Silver rules OK!

The ArabianMoney newsletter’s top silver investment for the year was up 14 per cent in January and subscribers have the full analysis in the latest edition out today (subscribe here and we will also send you the latest edition).

The big question for precious metal investors is where do prices go from here? In a major stock market correction then prices would likely be pulled down as in 2008-9. However, this could time could be rather different because bond markets are also looking perilous places to put your money (click here).

There is certainly a big risk to exiting the precious metals now and an unleveraged buy-and-hold position looks the safest option. Missing out on a major upswing is more of a danger now than getting caught in the downdraft.

But as we saw in January precious metals can be very volatile and that is why portfolio allocations seldom exceed 25 per cent, even though over the past five years silver has been the top performing major asset class bar one or two relatively obscure agricultural commodities.


However, the knee-jerk market reaction to falling GDP has some merit to it. The Federal Reserve has upped its money printing QE to $85 billion a month and will clearly not be able to withdraw it anytime soon. Remember that only this month there was discussion about the recovery being so good that QE could be wound up!

Fat chance of that with GDP falling in Q4. The US could actually be in recession, not a recovery.

Actually gold and silver prices ought to be much higher with all this money printing in progress and the risk of inflation. Markets generally do eventually catch up with reality and they must now do so for the Q4 GDP data that can hardly be brushed aside.

ArabianMoney has been warning about the feebleness of the US economic recovery for a couple of years, now the emperor is finally acknowledged as being naked in the street. Grab some gold and silver or you may end up with the same fate.

-- Posted Thursday, 31 January 2013 | Digg This Article | Source:

comments powered by Disqus

About Peter Cooper:
Oxford University educated financial journalist Peter Cooper found himself made redundant by Emap plc in London in the mid-1990s and decided to rebuild his career in Dubai as launch editor of the pioneering magazine Gulf Business. He returned briefly to London in 1999 to complete his first book, a history of the Bovis construction group.

Then in 2000 he went back to Dubai to become an Internet entrepreneur, just as the dot-com market crashed. But he stumbled across the opportunity to become a partner in, which later became the Middle East's leading English language business news website.

Over the course of the next seven years he had a ringside seat as editor-in-chief writing about the remarkable transformation of Dubai into a global business and financial hub city. At the same time prospered and was sold in 2006 to Emap plc for $27 million, completing the career circle back to where it began a decade earlier.

He remains a lively commentator and columnist as a freelance journalist based in Dubai and travels extensively each summer with his wife Svetlana. His financial blog is attracting increasing attention with its focus on investment in gold and silver as a means of prospering during a time of great consumer price inflation and asset price deflation.

Order my book online from this link


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.