The Fed Deters Investors from Buying Gold: Is It Working?

fedIf you’ve been watching the stock market lately, you’ve probably noticed a sharp drop on the price of gold and silver. The latest reports show that the Fed and Central Banks are manipulating the price of gold and silver. Clearly, this is evidence of market rigging by the Fed. However, it’s not just the government who is working to inflate the stock market price of the dollar. In order to inflate stock markets and show better stock prices, the Fed has deflated the value of precious metals, which causes great concern. The other achievement is the elevation of the US dollar. However, these actions are ruining market sentiments to purchase bullion and other precious metals.

Is It Working

Currently, this tactic against gold and silver is working and has improved stock and commodity prices. Real estate is on the up as well as the bond market. However, if you consider that a person was able to buy 250 oz of silver for the Dow Jones Average and today, you’d have to 650 oz of silver to purchase the average, it’s over 150 percent increase. That’s an extremely sharp rise to contend with, and for those who trade and invest mostly in precious metals, the latest news is unsettling. However, markets always fluctuate, and the stock market will eventually improve the price of precious metals throughout the year.

What to Expect Next Quarter

You can’t make any short term moves on the stock market just yet. The price of gold and silver is guaranteed to go up, as the trend charts show. The price of gold was extremely high in at one point when it was $1,900 per ounce. Now that prices have fallen, it’s just one of many times throughout the year when prices fluctuate. Extreme trends don’t stick around and usually reverse quickly. It’s safe to say that within a short period of time, gold and silver will continue to climb back to their original standing.

Current Market Sentiments

There isn’t a lot of faith in precious metals, but there is growing faith again in the stock market because it shows improvement. People see their investments and pension plans are safe when the economy isn’t entirely recovered. Overall, people still want to invest, and it’s allowing people to invest in other markets. For now, the economy is following the bear market trend, which usually means that at the top, investors are buying. However, it also means that the bubble could pop and the market goes away, which means there won’t be any more buying. That isn’t the case with this bear market trend. In a gold and silver bear market, it’s actually the opposite.

What to Do Now

Investors are incredibly frustrated at the lack of improvement in gold and silver. However, analysts have shown that this drop is only temporary. Many investors wonder if they should hold onto precious metal investments, and yes, it’s important to keep your investments and wait out extreme trends. You can always follow this simple line to help you through your investments: When you’re happy, you should sell, and when you’re feeling sick, it’s time to buy. It’s also essential to recognize that there is true value in gold and silver beyond the paper price.

Speak to a financial analyst

If you are still unsure about whether you should invest in gold or not, you should perhaps speak to a financial analyst that will take the time to evaluate your current investment portfolio and will offer recommendations as to whether or not precious metals can help you balance out your assets. Gold and silver are in high demand by many industries, and some of the world’s biggest mines are being depleted. The price is bound to increase back to its previous high and even beyond. The big question is: when?

 

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