Today acclaimed trader Dan Norcini told King World News the Fed is about to commit to more than $1 trillion of QE for 2013. Norcini stated that because of this, “Anyone who does not own physical gold is committing financial suicide.” Here is what the acclaimed trader had to say about this stunning situation and what it will mean for the gold market: “One of the things that may have been overlooked by a lot of people, but it certainly wasn’t overlooked by some of us in the trade, was a report that was published by Goldman Sachs dealing with the Federal Reserve and its upcoming policy meeting.”
Dan Norcini continues:
“Goldman Sachs expects, next month, for the Fed to come out of their policy meeting announcing QE4. It will be a purchase of $45 billion each month in Treasuries. This number will be in addition to the already existing QE3, which is $40 billion per month in mortgage-backed security debt.
But in a sense, Eric, QE4 is going to be a replacement for Operation Twist. Operation Twist was designed to push down the long end of the curve in order to keep interest rates artificially low….
“But here we go, now we’re talking about an additional $85 billion each month. This is fresh purchases of Treasuries. Here’s what is interesting, Goldman Sachs expects that to continue all the way through 2013. So do the math, that’s more than $1 trillion worth of QE for 2013.