Gold and Silver – Plateaus and QE3

Are these metals poised for gains? Two intriguing factors may point to yes. Let’s look deeper at the recent status of gold and silver, and why a positive change may be on the horizon.

Price Plateau

The prices of gold and silver have been quite steady for the past few months.  Since May of this year, it seems that these metals may have hit a new baseline – $1600.00 per ounce for gold and $28.00 per ounce for silver. Typically when gold and silver see a price plateau for this many months it is often followed by a time of growth.

When will this growth occur? It seems everyone is waiting for a certain piece of news to come across the wire. Yes, we are talking about QE3.

Quantitative Easing in September?

It’s no big secret that QE helps the price of gold and silver rise. The massive amount of money printing involved in QE causes our currency to devalue. Therefore, investors often flock to precious metals as a safe haven to protect their wealth.

It seems everyone was holding their breath at the beginning of August during the Federal Reserve meeting. Sadly, QE3 was not announced. The good news is however, this makes it even more likely to happen at the meeting in September. Our economy is still not performing well and another round of stimulus may indeed be on the horizon.

The Big Picture

Clearly we’re in trouble. Our economy is practically lying on a hospital bed hooked up to QE respirators. We’re in debt – massively, and more inflation will only keep us alive for a bit longer. Furthermore, the past five years have seen so many bank scandals that it’s become physically painful to watch the news anymore.

What’s the Best Plan of Action?

Simply stated – don’t wait. Gold and silver are holding steady with plenty of room for growth. If QE3 does occur, don’t be left behind the curve. Stock up on physical gold and silver bullion today before it’s too late.  The price plateau on these metals could be ending very soon. Don’t be surprised if next year you find yourself saying, “I should have bought gold when it was only at $1600.”

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American Bullion specializes in adding gold and silver to retirement accounts. If you have a question or would like to know more about your investment options, please call American Bullion at 1-800-326-9598 to speak with a precious metals specialist.