Gold Prices Surge

Gold prices have surged by over $90/troy oz. following the Fed’s decision not to taper its bond buying program and the likelihood that inflation dove Janet Yellen will be Bernanke’s replacement. Yellen has said she will keep inflation under control, but does she have what it takes? Link Bloomberg:

“It is an open question,” said Calabria, director of financial regulation studies in Washington at the Cato Institute, a policy research group that espouses free markets. “Can she be Paul Volcker if she needs to be?”

Volcker, the Fed chairman from 1979 to 1987, lifted the short-term borrowing rate to 22 percent to strangle inflation, snuffing out growth. The campaign drew a backlash from builders and others upset about the loss of work.

“People don’t send you two-by-fours when you are washing the system with liquidity,” Calabria said, referring to surplus lumber sent to Volcker in protest. Under Bernanke and Yellen, asset purchases have swelled the Fed’s balance sheet to a record $3.72 trillion.

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E.J. Smith is the Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH, where he completed course-work in Practical and Defensive Handgun, Conceal Carry Pistol, Shotguns, Precision Scope Rifle and Kidnapping Prevention. E.J. plays a Yamaha Recording Custom drum set with Zilldjian cymbals. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com. Sign up here to receive all the best content from Richardcyoung.com each week.