Blinken Pressed on Biden's Flow of Aid to Palestinian Terrorists
Argentina's Javier Milei Is Draining the Swamp
Federal Reserve Makes an Announcement About Interest Rates
The Latest Inflation Report Is More Bad News for Bidenomics
The Economist Took a Close Look at the NYT's Bestseller List. Here's What...
Police Department's Message to Beachgoers Concerning Rampant Theft Raises Eyebrows
Here's How AOC and Raskin Plan to Start Holding the Supreme Court 'Accountable'
An Unlikely Leftist Figure Slams the Secret Recordings of SCOTUS Justices
Hamas-Supporting Anti-Semites Are Somehow Getting Even More Brazen and Vile
Another California City Became a 'Sanctuary' for Trans People
Here's What Senate Foreign Relations Committee Ranking Member Risch Is Willing to Do...
The Coast Guard Intercepted Hundreds of Illegal Aliens Bound for the U.S.
What's Going on at 538?
Prior to Arrests, Guess How These ISIS Terror Suspects Entered America?
Can Republican Nominee Sam Brown Emerge Victorious in Key 'Toss-Up' Senate Race?

Fed Lowers Growth Rates, But Metals Still Grow

The opinions expressed by columnists are their own and do not necessarily represent the views of

At today's press conference, Bernanke said he thought inflation would subside as energy prices and other commodity prices moderate.

He also guided growth lower. He also said unemployment would subside only slightly: 9.1% in May 2011 — between 8.6% and 8.9% in 2011, falling to a range of 7.8% and 8.2% in 2012, and down to a range of 7% to 7.5% by the end of 2013.


Should we have lower inflation on the horizon, the fed has the comfort zone of keeping rates at current historically low levels, which they hope will eventually spark growth, though the spark will probably be just that, a spark, not anything more.

On the other hand, if the fed is wrong about inflation and it ends up heading higher, then we could have a low growth/high inflation situation on our hands, also known as stagflation.

In the 1970s, stagflation dominated the markets and was excellent for the performance of precious metals (PMs).

As for the debt ceiling, Bernanke said the Fed would keep the debt ceiling at its current level.

This is neutral for PMs.

On the other hand, some central banks around the world continue to print money, so that bodes well for PMs.

And China plans to mint more gold panda coins as they still need to stockpile precious metals as a hedge against a world of devaluing currencies.

But should China have an economic slowdown, this could create less demand for PMs.


As you can see, while there are many tailwinds at work which should bode well for PMs, there are cross currents at work which could make the rise a bumpy one so, as always, watch price/volume action of precious metal ETFs and obey your stops.

See these top stories:
John Ransom Ben Speaks, Markets Crumble, Again Gil Morales and Chris Kacher Fed Lowers Growth Rates, But Metals Still Grow
Bob Beauprez Obama Blunders on Batteries Badly Zacks Investment Research Office Depot, OfficeMax to Merge?
Lincoln Brown Tell the Marble Mafia It's Over Plus Market Commentary from the Ticker  The Ticker

Join the conversation as a VIP Member


Trending on Townhall Videos