Don’t fret

Don’t fret
These are testing times for holders of gold and silver but we’d suggest you don’t lose sight of the fundamentals. Whilst the USD spot dropped considerably, most projections see the AUD falling considerably more yet, possibly 80c at which point we’d be in the $1600’s today. Bernanke still only spoke in terms of possible tapering and even stated they would increase if necessary. Many,including 2 of US’s biggest banks think the talk of recovery is optimistic and it won’t happen – think of the possible rally in gold and silver if there was a backflip! And finally even if they did taper, there is still the fundamental issue of who on earth could/would buy that amount of treasuries in place of the Fed? So how does the US fund its near $17t in debt and costs??