U.S. Mint Sales of Silver Coins Reach Record in 2013 First Half
Wednesday, 19 June 2013
Fed Chairman Ben Bernanke said last month the bank could scale back its $85 billion monthly bond purchases if the U.S. economy strengthens, but a lack of clarity on the timing has unsettled markets. A policy statement from the central bank will be released today after its meeting.
Expectations are that the Fed may scale back its extremely unusual $85 billion per month debt monetisation programme to $60 billion a month and continue with near zero interest rates.
Both of which would be bullish for gold.
It would be very bearish for gold and silver if Bernanke was to indicate that bond buying would be phased out completely and interest rates allowed to rise to historic norms. However, given the very fragile nature of the US recovery, a return to conventional monetary policies is not going to happen any time soon.
The US economy remains massively indebted and the fiscal situation sees little sign of improving. Many states are on the verge of bankruptcy.
This is leading to continuing very robust physical demand from investors and store of value buyers internationally and in the U.S.
This demand can be seen in the lack of liquidations in the silver ETFs by investors and speculators, and by continuing store of wealth demand for silver coins and bars.