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The Fed Ends QE

QE era ends, the Fed has stopped printing US dollars, so this November is the first month without QE since 2008.

QE1, QE2, QE3 were the three rounds of quantitative easing, but the last one beared the nickname "QE infinity" (see earlier 2012 article here), because it was supposed to have an open end - leaving more room to a bigger volume.

Ironically, the Fed has started tapering QE3 in 2013 already (more here about QE-cutting) and, eventually they put an end to the easing.

Nevertheless, this has strengthened the US dollar and has contributed to the diminishing of gold's and silver's price. The shiny yellow metal has dropped to the lower 1,130's and silver has barely managed to hover above 15 $.

The US dollar now becomes a strong asset, also because it's gaining ground against the euro, the yen, the rouble, the yuan.

Still a strong global reserve currency, the US dollar might continue an upward climb towards the end of 2014 and in early 2015.

The Fed considers QE a success, believing it has had a positive effect on the US economy, unemployment has been reduced.

The US GDP has expanded by 3.5 % per annum, surpassing the expectation of 3 %. Although, this is down from the 4.6 % in the second quarter.
The growth too is part of the reason why the Fed has given up on easing.

The stronger dollar will have a negative effect on gold's and silver's price. The two precious metals will most likely continue to drop through the remaining months of 2014. (See an earlier Prime Values article - right here).

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