As you are all aware, Gold and Silver came under extreme pressure falling to their lowest levels in two-and-a-half years as the market responded to Federal Reserve chairman Ben Bernanke’s comments in Washington on Wednesday.
We find the reaction quite bizarre:
- Ben Bernanke did not say anything new; he did not use any conviction in his comments which were different than what he was saying for the past 4.5 years, why would this cause such a panic in the market?
- After the FOMC report was released, as per custom, Bernanke had a Q&A and he point blank said that the Fed's tapering depends entirely on how the economy performs….which leaves the door open for QE infinity. Does anyone really believe that the U.S. economy or global economy is that strong?
- Will the Fed really shoot themselves in the foot by having rising interest rates when they are one of the biggest borrowers in the world?