Gold prices just fell like a rock today — something like $20 so far, and they’re still falling. This isn’t enough to ruin the market, but it’s enough that I’ve already been receiving emails from people asking what’s happening.
Right after 10AM EST, Ben Bernanke released the Fed’s Monetary Report to Congress, which essentially said that the economy is “slowing” down, but that there’s still a recovery.
On the economy, Bernanke said:
“The U.S. economy has continued to recover, but economic activity appears to have decelerated somewhat during the first half of this year. After rising at an annual rate of 2-1/2 percent in the second half of 2011, real gross domestic product (GDP) increased at a 2 percent pace in the first quarter of 2012, and available indicators point to a still-smaller gain in the second quarter.”
Of course, I’ve made it clear over and over what I think about the economy. There is no recovery. The attempts to “fix” the economy have miserably failed. The labor market is worse than before, we have more debt than ever before, malinvestment is rampant, and it will take another decade to sort out all of the harm the “stimulus” of the Fed has created — at least.
Bernanke has also essentially passed the football, at least in the short-run, to congress, saying they should worry about being fiscally sustainable and not running deficits too high, but that they should also stimulate the economy. Of course, this is just typical Keynesian doublespeak, and is meaningless.
Will there be QE3? Maybe, there’s really no telling at this point. If there is, it will be destructive and will help asset prices for stocks and gold — just like no QE3 today means gold and stocks will both fall at least at first.
It’s impossible to predict the short-term impacts to the economy, because we live in a manipulated economy. This is one reason I say in almost every article that my gold investing strategy is incredibly simple — I buy more every month, without fail. I also buy silver bullion every month as well.
This essentially guarantees that over time, I’ll have a lot of gold and silver, and won’t have to worry about timing the market. Over the next 10 years, this is the simplest way to become prepared for economic catastrophe.
If anything changes in the gold market, I’ll email my email newsletter subscribers. If you haven’t already signed up, please do so here — it’s completely free.
Join Over 8,000 Investors:
In less than 15 minutes a week, you'll learn everything you need to know about gold prices, the collapsing dollar, and the real inflation rate.
Thousands of investors have already signed up for the newsletter and are getting the info for free:
