We are able to also anticipate Ben Bernanke to be in place till a minimum of early 2014. The only change I anticipate in the Fed now is more frequent and nonetheless bigger easing campaigns, as well as potentially extending low rates, once more, beyond mid-2015. Even when Bernanke is replaced, analysts anticipate only more of the exact same seriously misguided policies. In reality, just yesterday San Francisco Fed President John Williams hinted that probably the most current QE3 bond-purchasing plan could nicely exceed $600 billion.
Therefore what does all of this mean to investors in hard assets--particularly these with holdings in gold and silver? Since Obama was elected in 2008, gold is up 116% and silver us up a whopping 198%.
Honestly, specialists anticipate a comparable overall performance could nicely be enjoyed over the next 4 years. Continuous easy cash, extreme low interest rates, mounting uncertainty, and expanding investment demand are most likely to become the drivers. If this plays out, by the time the next election rolls around in 2016, we might be taking a look at $3,700 gold and silver might be trading at $95. Frankly, I could see each of those levels effortlessly surpassed. Rare Coins, Silver Coins, Gold Coins, Learn more >> http://www.silverpricestoday.cc/
As for power, keep in mind that Obama has stated that he's strongly behind the "green" kind. That puts him in a quandary over natural gas. Definitely, it burns cleaner than either oil or coal. But a lot of the new supply comes from shale. That means a lot of fracking is required to get at it. The issue is there's a fair amount of environmental opposition to fracking, since these groups think it could pollute aquifers, and trigger minor seismic events.
The Obama administration's Bureau of Land Management (BLM) is attempting to impose daunting new regulations on each federal and tribal lands, adding on layers of reporting as well as compliance costs.
As for coal, Obama's made no bones about just how much he's against it, even when he does talk up clean coal technologies from time to time. Regardless of coal stocks being down about 50% since mid-year, they lost another 5% recently. There is a good chance a lot of the bad news has currently been factored in, so coal stocks could really turn out to become an fascinating contrarian play going forward.
Uranium and nuclear power have taken it around the chin since Japan's Fukushima disaster. But Obama has been a large supporter since he campaigned in 2008; promising nuclear power would remain as part of the "energy mix". Billions in loans guarantees have been promised to big nuclear power utilities. Like coal, nuclear stocks are down, in this case about 35% in the previous two years.
But a sizable supply of uranium in the Russian Megatons to Megawatts plan will expire next year. Big and developing Asian nations continue to develop reactors for cost-effective power. Also, the power hungry economies of Germany and Japan, each of whom claim they'll lessen their dependence on nuclear power, are most likely to backtrack in the future as power costs from other sources skyrocket. Nuclear power and uranium are also searching like potentially great long-term contrarian trades at this point.
Regardless of how you slice it, the next 4 years will probably be rocky. Volatility will increase and uncertainty will spread.
In the face of all of that, gold and silver are a long-standing safe haven, some thing that is unlikely to change.
However the globe will not quit turning, so energy will continue playing a central function in the economy. Natural gas is one to watch, with coal and uranium looking like appealing choices to bet against the crowd.
Just make certain hard assets like gold and silver are part of one's portfolio mix. Analysts suggest purchasing gold and purchasing silver these days and hold it for the future financial chaos that lies ahead. How high will silver go? Learn more >> http://silverpricestoday.cc/