Perfect Storm Of QE3 & Fiscal Cliff May Send Gold Above $2000

By
Devon Layne
September 12, 2012
Share:

Related ETFs

Ticker Fund name
GLDSPDR Gold
IAUiShares Gold Trust
Related ETF Lists
Commodity ETFs, Gold ETFs

 

The European Central Bank’s decision to buy bonds in order to negate the eurozone’s debt crisis has investors running toward gold, and if the U.S. central bank does follow up with a third round of quantitative easing, the price of the yellow metal could hit $2000 by 2013, according to an article on Hard Assets Investor.

In comparison, when Federal Reserve Chairman Ben Bernanke announced QE2 two years ago, the precious metal rally began at $1200 and ended between $1500 and $1600, the article said.

Also, total ETF gold holdings grew to 79.7 million troy ounces as a result—increasing by 0.7 million ounces, or 0.83 percent, in that time frame. Silver was the only precious metal to lose holdings, according to HAI.

Expect to see a similar pattern regarding holdings and prices should the Fed’s QE3 materialize as well as the ECB’s stimulus program, the article said. Gold-focused ETFs like the SPDR Gold Trust (NYSEArca: GLD) and the iShares Gold Trust (NYSEArca: IAU) are likely to rally as a result.

Visit HardAssetsInvestor.com for the full story.

ETF.COM CHANNELS

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

The oil funds 'XOP' and 'OIH' gathered money on Thursday, April 16, helping lift total U.S.-listed ETF assets to a record $2.158 trillion.

'SPY,' 'LNK' and 'XOP' paced SSgA's issuer-leader inflows on Thursday, April 16, as total U.S.-listed ETF assets reached a record $2.158 trillion.

ETF.COM ANALYST BLOGS

By Olivier Ludwig

If you’re puzzled by Israel’s relatively strong stock market performance, don’t forget you’re taking measure of a developed country.

By Olivier Ludwig

If only Fidelity could speak freely about all the positive things it does for investors.

By Dave Nadig

Last week’s minor information hiccup had huge implications.

By Dave Nadig

How Ric Edelman is reinventing the ‘new economy’ investing paradigm.