Thursday, October 28, 2010

Gold about to Skyrocket as BAC (NYSE:BAC) Sees QE of $1 Trillion, Goldman (NYSE:GS) - $2 Trillion

A couple of things are working in the favor of gold prices, as they have taken a breather as profits are taken and direction sought concerning the economy and inevitable new round of quantitative easing by the Federal Reserve.

Bank of America sees the Federal Reserve buying $1 trillion in government debt, while Goldman Sachs (NYSE:GS) sees the Fed acquiring $2 trillion in debt.

They are going to do this incrementally most believe in order to keep the shock of how much more they're going into debt hidden from the American people.

The two giant financial institutions see the Fed starting off with $500 billion to begin with, and adding to that throughout the next year. It should all begin sometime right after the Fed meetings on November 2nd and 3rd.

There is no doubt gold prices will soar for the two reasons mentioned above, and when the market understands the quantitative easing fiasco will be implemented in stages, but will still bring possibly trillions more of debt to the nation, it's hard to tell how quickly gold prices will move up as they continue to shatter historical records.

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