My Gold & Silver Predictions For 2014 & The Federal Reserve Taper

The Fed Tapering QE

I was just on Monday saying to GFL Platinum clients that the Fed is likely to Taper in the next quarter and what to do if they do. I told them to prepare for a $1-$1.50 drop in the price of Silver if they do taper and currently we’re $0.67 down.

Now, what does this actually mean? In reality, nothing. However they needed to do it. Let me explain… They’ve decided to not print $85bn a month, but print only $75bn a month. This still equates to $900bn a YEAR.

The $10bn a month does not have much of an effect on the markets at all. However what the Federal Reserve has done is give Wall Street a clear message, we’re reducing money printing, however interest rates don’t look like they’re going up until 2015. So, borrow away! Instead of printing the money & giving it to you, we’ll just let you borrow it at 0%. Get it?

My Gold & Silver Predictions For 2014.

1. Gold & Silver price will bottom, if they haven’t already, by the end of the first quarter of 2014, and then reverse to the upside at a pace we have never seen. It’ll make 2011 look like a stable rise.

2. New “re-branded” form of Quantitative Easing will come into effect by the end of 2014.

3. By the end of 2014, Quantitative Easing will be HIGHER than $85bn a month. Yes, they’ll increase it.

4. Actions will be taken by the Federal Reserve to stimulate money supply increase to main street to stimulate spending to avoid deflation. As spending increases, interest rates will spike, real interest rates. As interest rates spike, temporarily, this will cause a problem again in the housing market & the stock market, this will force the reduction of interest rates again, and an installation of a permanent long term quantitative easing.

5. Gold & Silver will break previous upside price records by end of Q4 2014 with leeway to Q1 of 2015.

6. The Dow Jones is due for a huge (25-50%) market correction in 2014.

Agree/Disagree with my predictions? What are your predictions? Please let me know in the comments…

Minesh Bhindi
GoldForLife.com

9 Comments

Gary

December 19, 2013 at 11:44 pm - Reply

I believe that as long as the western world governments are saddled with tremendous debt, the central banks will do everything in their power to suppress the price of precious metals, (Gold and Silver). The strategy, as I see it, will be for the Fed to keep interest rates, next to zero, so the debt can be financed, with low cost money, (bonds).
All normal indicators, would indicate that the price of Gold and Silver should be increasing, not searching for a bottom. The demand for Silver is at an all time high.
when this is the case with any other commodity, in a free market environment, the natural reaction is for the price to increase.
In my mind, the logical conclusion is that outside forces are suppressing the true market price.
Of course, when the value of the dollar starts sliding and inflation increases, the price of Gold and Silver will have a huge spike.

peter mcgrath

December 20, 2013 at 8:19 am - Reply

h Minesh
thanks for another interesting prediction no nothing about how the Quantitative Easing and gold and silver But I have noticed on several binary trading platforms that silver has up to 98% buyers so someone thinks that the price of silver is going to raise .I could not afford to invest in silver but trading binary options in commodities etc is making me money that’s where your blog is very useful
I wish you and your family a great holiday break
regard’s and thanks
peter McGrath

Geoff

December 21, 2013 at 10:14 am - Reply

According to the experts, the US indexes are due for a retracement of between 10% and 30% in Q1 2014 depending on who you listen to.
If they do dive then there will be a lot of people wanting somewhere to put their money (assuming they got it out in time). So perhaps the precious metals will be their home (just a thought!!). (and a hope!)
Have a good holiday everyone.

Oriel

December 21, 2013 at 11:05 am - Reply

Hmmm, well these predictions are different from a few months ago when it was looking like gold and silver had bottomed out back then and would be rising steeply in early 2014……. so I suppose the predicted time frame for the bottoming out and then the steep increase has shifted forward by about 12 months …….

……. if only we all had a crystal ball lol! I guess we’ll just have to wait and see 🙂

Minesh Bhindi

December 21, 2013 at 12:15 pm - Reply

Not different at all actually, if you look here: http://screencast.com/t/2tbDgGNC0Q you’ll see where I last suggested a bottom. I still think there’s a chance for a rise by end of Q1, it’s very very very likely, however the big thing that changed is the Fed taper, hence pushing the time limit of it out from a “Prediction” point of view to by the end of 2014. Just in-case there’s an extended game-plan for the tapering. It could be reversed by Janet Yellen in January, or it might take a couple of knocks for it to be reversed.

Plus, as you know Oriel, these public predictions really become a whole lot more focused when inside the community. GFL students get a much more focused opinion & guidance than everyone else because I can help you & respond to movements week to week on the Q&A calls.

peter mcgrath

December 21, 2013 at 2:39 pm - Reply

hi Minesh
I follow your articles on the price of gold and silver with great interest as you seem to have a very good understanding about how the money supply affects the price of gold and silver
I will be interested to see how it all works out especially the possible correction downwards on wall street
wishing you and your family a lovely holiday break
regards
peter McGrath

Mike Hutchey

December 21, 2013 at 7:33 pm - Reply

Conventional thinking, esp. among stock mavens is ‘don’t fight the Fed.’ Their continuing dovish behavior may keep the market elevated well into 2014 and beyond. It will take forces outside the U.S. to cause the 10 year treasury yield to move up sharply. Whether the stock market ‘correction’ is overdue, or not, the market has a way of rolling on and on far beyond what anybody envisions. But when the snap comes, yes it will move swiftly. The market has confounded everyone since 2009, and it could continue for another year or longer. The whole thing was engineered by easy money. Just as Alan Greenspan left rates far too low for far too long post 9-11, which resulted in the great housing bubble, the Fed will be well behind the curve again, and it will end badly…as this movie always does.

Andrew Heydon

December 23, 2013 at 11:04 am - Reply

Thanks for the updates. We live in interesting times.

Ian Ramsay

December 23, 2013 at 11:51 am - Reply

I believe that you are mostly rIght on QE in the US.
I am more concerned about the repercussions on this side of the Atlantic.
As long as our Government hold on to their austerity measures, I believe that we will continue to see sustained but steady growth.
There may be some loosening of wages in the private sector, but these will only be small and not enough to affect interest rates.
Rates should be on hold throughout 2014 in the UK.
Industry and services will gradually improve, although the retail sector may have a poor Q1, picking up after Easter.
I am optimistic for gold and silver and believe it will make significant moves this year.
How high gold goes will depend upon how much China wishes to acquire.
With all the gold that China has bought and is buying, what if they were going to back their currency with it, like when we had the gold standard.
If that happened, then the yuan would become the reserve currency instead of the dollar, a killer for the US, even though China holds billions of dollars in various forms.
The Chinese are looking to buy up g

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