Gold and Silver made astonishing moves to the upside today on news that the Federal Reserve will hold it's key interest rate at 0% until 2014.
Artificially low interest rates involve the Fed increasing the money supply for the purpose of cheapening credit - activity which is all very inflationary, bearish for the dollar and bullish for Gold.
The extent of the reaction to the Fed's announcement signifies several things, which Jim Sinclair discusses in an interview with King World News:
1. A growing awareness of the extent to which the Fed has been debasing the dollar
2. The start of mainstream and institutional interest in the gold market.
See the King World News blog for Jim's interview.
Is this the 'psychology event' - the fundamental change in perception I am known for talking about?
No, but it is a psychology event and a sign of things to come.
One thing is certain, Gold watchers - interesting times are ahead.
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