Gold is down some $25+ dollars today because of the Fed minutes where they supposedly are talking about curtailing or even ending “QE 3.5 and 4.” Really? First off, this is not possible as there are nowhere even close to enough buyers for the Treasury debt that must be sold to keep the U.S. doors open. This is fact. If QE anything were to slow down, even for a moment, the financial system would literally cease to exist as Treasury bond prices would sag without Fed purchases. Everything financial on the planet is based off of (priced off of) Treasury securities, if Treasury securities drop in price… everything else “”financial” will sink with them. This is also fact.
Without going into a major explanation, please understand that the Fed cannot now, nor ever take their foot off of the gas without dislocations that culminate in all financial systems shutting down. If the economy is “not so rosy” even with massaged, altered and just plain bogus reporting… then what is the economy really like? (C’mon, you know… you’ve used your own eyes and ears, are “things” so good that the Fed needs to slow the economy?) As for today’s “reaction” in gold, how curious? How curious that stocks would be bid up in ridiculous fashion IF the truth (it cannot be) is “The Fed will pull the punchbowl?” The early “leak” of Fed minutes is laughable, both to timing and substance. It is what it is but having “100 e-mail recipients” receiving them early is hilarious. Did anyone trade on this (mis) information yesterday and overnight? It really doesn’t matter. The “sender” mistook the “day” Tuesday as being Wednesday and in all probability the “year” also. It may be 2013 but in his and his master’s minds it is the futuristic 1984!
You are being “told” to sell all of your gold today by the release of bogus Fed minutes that are laughably illogical. You can worry and fret about no more Fed easing or you can pin on the refrigerator the many and obvious reasons to buy gold that I just sent you earlier today. That list is not all inclusive and will only grow in number and severity. The ship is about to sail (it has been sailing for 12 years already), you can either be on it (with all of your belongings) or listen to the illogic of “carnival barkers” herding you to your demise. We are VERY close to a most historic inflection point to humanity’s history! THINK for yourself!