Wednesday, 12 December 2007

The Fed cuts its main interest rate by 0.25% and the precious metals sector falls?


The Dow fell out of bed and the PM sector follows? Today was pure manipulation. TPTB could not afford to give the impression that gold and silver were about to move higher and the PM equities are still in lock step with the main market. Da Boyz who control the Dow and Nasdaq threw their toys out of their cots today because they were displeased with just a 0.25% cut in the base rate. As a result, the DOW fell almost 300 points!

Gold and silver and their related equities will climb in value despite today's shennanigans. The Fed cut rates and wanted to stop the impression that the Dollar would fall as a result. Temporary madness won out - but it cannot and will not last. In a few days, when Joe Sixpack is not looking the PM sector will do what it should have done today - and will do over the next few months!

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I teach Film, Media and English Lit.