Gold, Silver, Palladium Bullion Biggest Quarterly Gains since 2010
Gold and silver had made their biggest quarterly increases since 2010, as gold has increased in price 11 percent since the end of June, positioning it for the biggest quarterly gain since June 2010, as Federal Reserve, Bank of Japan, ECB have all announced measures to stimulate growth. The quantitative easing programs assure that the metals are breaking through consolidation and moving towards their next leg up. This is reasonable timing considering the aforementioned moves of coordinated central bank action. The Fed, BoJ, and ECB join the BoE in the next phase of the crisis as the race to the bottom grows more acute. Expect peripheral nations to join in the printing as the euro and dollar, especially, begin to devalue in comparison with their currencies.
Silver is narrowing in on a 26 percent gain for the quarter, the most since the end of 2010, while platinum has seen its longest rally since at least January 1987. The spot price of platinum has jumped 22 percent since Aug. 10, when violence erupted at the Lonmin Marikana operation.
Here is gold’s run-up from June-August 2010:
Palladium also made significant gains during a similar timeline, running from $400-$800 in very little time at all.
Before the announcements made in the last month regarding QE, the ECB, Fed and BoJ had been on vacation from printing. It was only in the last month when the coordinated effort took place. ECB, just like the Fed, announced an unlimited QE program and is about to embark upon it. The Chinese central bankers also recently injected a record 290 billion yuan into the banking system.