If QE3 comes like some are predicting, should we buy silver and gold right now?

[nbhadja]

I am assuming that QE3 will come.

I am new to this so help me out, QE2 will end on June 30. Would there be a period between June 30 and when QE3 starts (which would have gold and silver falling down by some amount)? Or would QE3 start right after QE2 ends meaning if I want to buy silver and gold I better buy it now or soon?

Because if there is a gap between QE2 and QE3 I would assume silver and gold would fall some and I would wait to buy it during that gap.

http://commonamericanjournal.com/?p=28933

 

[eduardo89]

It's not going to happen, the fed says it's ending QE2 on schedule later this month. They'd never lie.

 

[Ray]

Buy during the gap. Everyone says there won't be a QE3, but after QE2 ends and the economy tanks, Bernanke will have no choice. Stocks and commodities will both fall after QE2.

 

[headhawg7]

Buy during the gap. Everyone says there won't be a QE3, but after QE2 ends and the economy tanks, Bernanke will have no choice. Stocks and commodities will both fall after QE2.

I agree and as long as rates are low and being held low then you will be ok.

 

[Seraphim]

Big money is about to drain out of govt bonds and the stock market.

This summer, cash will be important to have - and buy like you mean it.

IF you are a precious metal buyer - back up the truck, I mean it as literally as you can imagine.

I think this will be the systemic short term deflation before the systemic inflationary/hyperinflationary storm.

 

[bobbyw24]

READ: QE3 And the Silver Entry Point

http://www.ronpaulforums.com/showthread.php?291379-QE3-And-the-Silver-Entry-Point&highlight=rubino

 

[cubical]

Everyone thinks there will be a sharp fall between now and the start of QE3, but if everyone thinks it, it very well might not happen. we will see.

 

[Cleaner44]

You should buy buying gold and silver regardless of price and the media. Own real money.

 

[Seraphim]

I think the probable chain of events will be some as follows;

2 weeks of slow but stable descent of stock markets, same trend in commodities but more volatile, strenghtening of cash and a loss of jobs.

2 days of merciless drops in all markets - cash strengthens.

Week of DEAD CAT BOUNCE.

3 weeks of steady drops in all markets, more jobs lost.

MERCILESS DROP IN ALL MARKETS.



From there...

We might start to see soverign debt collapses ad currency issues.

Everyone thinks there will be a sharp fall between now and the start of QE3, but if everyone thinks it, it very well might not happen. we will see.

 

[Gaddafi Duck]

I think the probable chain of events will be some as follows;

2 weeks of slow but stable decent of stock markets, same trend in commodities but more volatile, strenghtening of cash and a loss of jobs.

2 days of merciless drops in all markets - cash strengthens.

Week of DEAD CAT BOUNCE.

3 weeks of steady drops in all markets, more jobs lost.

MERCILESS DROP IN ALL MARKETS.



From there...

We might start to see soverign debt collapses ad currency issues.

What does the technical analysis tell us?

 

[Zippyjuan]

The end of QE2 is expected and will happen soon. The market has already priced it in so there should be no dramatic changes in any markets when it happens.

 

[Michael P]

I'm guessing that QE3 will be announced once we have a couple weeks of poor treasury auctions. This probably wont happen until the debt ceiling is raised and we start auctioning new debt for a while.

I have September in the pool.

Buy Gold & Silver when QE3 is announced.

 

[pmbug]

Dollar cost averaging works with PMs too. Spend a set amount on a regular schedule and you don't really need to worry about timing the market.

 

[SevenEyedJeff]

Don't forget about the FED meeting June 22nd. The Bernank might announce something like a "3 month extension" of QE2 to help keep the economy from going into a double dip. I'd like to see where PMs are a couple of days before that meeting. At 2:15 ET on the 22nd the Bernank holds his post-FOMC televised conference.

 

[ILVMYYF]

http://www.theinternationalforecast...cle_While_The_World_Lives_In_Financial_Crisis

This article was written by Robert Chapman.
Robert Chapman is the editor and publisher of the International Forecaster, a publication that covers business, finance, economics, and social and political issues all over the world. Mr. Chapman has spent 45 years in the finance and investment business, 28 of which were as a stockbroker, specializing in gold and silver shares. For a number of years he owned his own brokerage firm.

Mr. Chapman attended Northeastern University and spent several years in counterintelligence with the US government. He has made a number of very important predictions and is probably one of the most unpopular people in Washington, DC, as he spares no one in government who is not doing what they should be doing.

He is now a very solid proponent of owning physical precious metals especially silver...and from what I gather a proponent of Ron Paul for POTUS...
..

 

[Trigonx]

Dollar cost averaging works with PMs too. Spend a set amount on a regular schedule and you don't really need to worry about timing the market.

That's what I do every weekend when spot prices don't move, buy a certain dollar amount of silver.

 

[teacherone]

The end of QE2 is expected and will happen soon. The market has already priced it in so there should be no dramatic changes in any markets when it happens.

i agree.

this is why the fed leaks its plans prior to any action.

spooking the markets is never a good idea.

 

[Johnnybags]

Market has not priced in the impossible to know. No QE3 or its new euphemism means noone knows who will buy Government bonds? They might buy em but at rates far higher. Congress will be forced to keep the game of printing going but only after the unknown becomes known. The FED is the market for most of any new issues a few weeks after the primary dealers gut a nice cut. What happens next is unknowable as we have not done this before to this extreme. Much of government spending now is financed solely on QE and you can bet that it will continue since there will be not enough money coming in to pay the bills. However we commoners need to see a FRAUD st hisseyfit first to beg for more or at least rates triple or more todays as the alternative. Look for the Armageddon crowd to tell Congress tanks in the streets again if no printing. If it is extended with no interruption buy commodities and leave the banks, if there is an end to QE as stated commodities will drop hard and then watch for the Armageddon crowd to twist the FEDs arms and then buy commodities and leave the banks. The only thing for sure is leave the banks, just time it properly. The market is going to call the FEDS bluff soon. Exortion by another means.

 

[Johnnybags]

Zerohedge summizes same as me, who buys next month and what happens next month? Rates rise, Wall st hissey for more printing. All the auctions are frauds since the primary dealers flip half it back.


Last month, the 3 Year bond auction conducted on May 10 was memorable for 3 reasons: it was the auction that breached the US debt ceiling, it priced at 1.000%, and came at the third highest Bid To Cover in history, despite a decline in Indirect participation. Basically the auction was a massive success primarily due to the Primary Dealer participation, which took down 51.9% of the entire issue, or $16.6 billion of $32 billion. We predicted, accurately, that "Naturally, none of this due to actual demand, but merely due to Primary Dealer expectations of a prompt and profitable flip back to Brian Sack... Look for Cusip QM5 to be briskly monetized as soon as the next 3 Year POMO is announced, when the next POMO schedule is revealed tomorrow at 2 pm." Well the schedule came and went, and following today's just completed $6.4 billion POMO, we see just why all recent bond auctions continue to price at such phenomenal internals: at today's POMO the On The Run QM5 accounted for 3.189 billion of the entire $6.397 billion, or exactly 50%. This follows the May 24 POMO at which QM5 represented $5.14 billion of the total $6.4 billion. In other words, less than a month later, PDs have flipped out of $8.3 billion, or exactly 50% of the entire Dealer allocation at the auction. Basically, had the Dealers not had the backstopped certainty that the Fed would gladly gobble up whatever 3 Years they had for sale, and if heaven forbid, they would be forced to keep $8.3 billion in capital yielding just 1.000% on their books, the auction internals would have been vastly different. But such is life when monetization continues... for another 3 weeks until the POMO barrage ends on June 30. For all those praising the strength of each and every auction, perhaps it would be prudent to wait until July 1 and see just how much interest Dealers have when they don't have the Fed in their back pocket buying up half of the entire auction takedown...

 

[Original_Intent]

The way I am playing it (not necessarily wise, just telling you my thoughts). I sold half of my physical at $38. Right now QE3 is an unknown. I expect silver to bounce around its current level (with some volatility) for the next six weeks or so OR until QE3 is announced, whichever comes first. This way I still have half of my silver in case of a sudden unexpected move. My feeling is that if QE3 is not announced by the end of July, that stocks and commodities are going to drop in a big way, and if it does I will buy back in when it drops below $30 (probably with half of my proceeds) and then again if it gets down to $25. If it breaks $20 I might take out loans to buy more.

If QE3 is announced I will buy back in all the way as quick as I can get to my dealer.

Again, maybe not the smartest, but I have done pretty well on timing things for the last few years.