This weeks FOMC meeting Oct 28-29

J

jim4silver

Silver Member
Apr 15, 2008
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This week's FOMC meeting Oct 28-29

What will it mean for PM's? Probably won't matter at all but who knows. Fed is expected to remove the last remaining bit of OE 3 (or is it 4?). I don't mean to cry wolf but I do feel like the PM's are getting ready for another up move in the not too distant future.

Maybe the stock market will react strongly one way or the other to the end of QE (for now)? Hoping the VIX comes down a bit soon. Wanting to get in again (TVIX) but not ready yet.

Just my opinion,

Jim
 

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Jesus, silver is in the $15.00 dollar range now. Guess it had a negative impact.......
 

I wish I had extra $$$ now, I would be buying. I wonder if Charlie is taking advantage of the "sale" price?

Jim
 

jim4silver said:
I wish I had extra $$$ now, I would be buying. I wonder if Charlie is taking advantage of the "sale" price?

Jim
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LMAO Tomorrow I'm waiting to buy a few 1 oz Prospector rounds at or below $16.43 each. You can only buy a max of 100 oz's so that's a bummer but yes Jim I'm Still Stacking.
 

jim4silver said:
What will it mean for PM's? Probably won't matter at all but who knows. Fed is expected to remove the last remaining bit of OE 3 (or is it 4?). I don't mean to cry wolf but I do feel like the PM's are getting ready for another up move in the not too distant future.

Maybe the stock market will react strongly one way or the other to the end of QE (for now)? Hoping the VIX comes down a bit soon. Wanting to get in again (TVIX) but not ready yet.

Just my opinion,

Jim
Click to expand...


Bailed out of my TVIX position today with nearly 20% profit (minus commissions). Like last time, I was down quite a bit before the run up the past few days. Anyone think holding silver is volatile and stressful should try playing the VIX market (LOL!).

Will probably go up higher but I always buy too early and sell too early it seems. Definitely not a buy and hold play.

Just my opinion.

Jim
 

This coming week we have another FOMC meeting. All the stock pundits are watching to see what Yellen says about when an interest rate hike will come. Will this word or that word be used like "patient", etc.

Meanwhile, the dollar continues to rise in part because of an expectation that rates are going up, at least per the pundits. So if Yellen were to keep language that makes the pundits believe there will NOT be an imminent rate hike (such as keeping the word "patient" in her statement), it could in theory cause a temporary drop in the dollar. This would also give the stock market another upward push. This would probably be short term good for PM's if the dollar was dropping off the news.

However if Yellen says something that does make it sound like an imminent rate hike is coming (3 to 6 months) by removing the word "patient", etc, I think it will make the dollar move up even stronger and would likely cause temporary drops in stock prices. This would probably hurt PM's a bit short term.

Conventional wisdom is she will go out of her way to not rattle the stock markets in the language used, but if it is time to raise rates, I think she will make it clear by what language she uses. Some pundits opine that the Fed doesn't want to let the dollar get "too strong", so they might hold off longer on when they do raise rates for fear that if rates get raised that will further strengthen the dollar. This would have an added benefit of helping stocks which everyone except the shorters seems to like.

What some might forget here in the US is that while a stronger US dollar does generally keep PM prices down in US dollar terms, all over the world where the currencies are going down in value compared to the US dollar, their PM prices are rising big time. People who bought gold in currencies that have lost much value over the past year like Euros, Canadian dollars, etc, are doing well right now since those currencies are down and gold priced in those currencies is up.

Here are charts of gold in Euros, then one in Canadian dollars. Click on the one year chart for a good look over the past year:

http://www.goldpriceoz.com/gold-price-europe/


http://goldprice.org/gold-price-canada.html

Just my opinion.

Jim
 

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Glad to see we are moving up. I kind of figured we might because most of the normally pro bullish PM pundits who have their own websites said it was going to fall short term. The ones I have followed cannot make an accurate call when they say the metals are going up, so why should they be right when they say the metals are going to fall?

I am not saying we won't go lower from here in the future, only that you cannot trust ANYONE'S judgement other than your own. I guess some of the bullish pundits are so tired of being wrong they decided to flip outlooks, funny how even then they are wrong (short term trends). I won't state the names of the pundits, but some are thought to be god-like if you believe the online hype.

PS Picked up two rolls of BU Kennedys today for $130 per roll and the ones today look awesome. As Charlie says keep stacking.

Just my opinion.

Jim
 

We have another FOMC meeting this week. On Wednesday they will say whatever it is they say. I am curious to see about interest rate hikes. If they say something that shows they won't raise for a while, that should help stocks and PM's. But you never know.

Jim
 

I am guessing that TPTB are setting up to smash PM's tomorrow after Yellen's speech since PM's are moving up the last couple of days? I have no clue what is going to happen tomorrow, but in the past when the PM prices were rising going into the FOMC Wednesday they wound up falling later that day or so.

Would be nice to see silver break 18 again.

Jim
 

Let's see what our Fed announces today and what the market does. Their statement should be coming today in 5...4...3....2....1


Jim
 

I'll chime in if I may with my opinion and be blunt....................Generally speaking, the economy is NOT presently strong enough to warrant any hint of increase in interest rates. Therefore, I believe the Fed will NOT increase interest rates next time around resulting in a short term pop in precious metals, but I still think silver will trade in the $13 to $14 range in the coming months........................Rich
 

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Rich in Central PA said:
I'll chime in if I may with my opinion and be blunt....................Generally speaking, the economy is NOT presently strong enough to warrant any hint of increase in interest rates. Therefore, I believe the Fed will NOT increase interest rates next time around resulting in a short term pop in precious metals, but I still think silver will trade in the $13 to $14 range in the coming months........................Rich
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I agree with your view of the economy, but I am not so sure the Fed's decision is based entirely upon such. They are looking more ahead than the current state of the economy. I don't think they will raise again just yet because the market has been down, but I think they would like to if they could and not catch too much flack.

Jim
 

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