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The Fed Hammers Gold, but Now What?

After the U.S. Federal Reserve gave investors a pretty big hint last week that the end of quantitative easing could be in sight, precious metals -- including ETFs SPDR Gold Trust (NYSEMKT: GLD  ) and iShares Silver Trust (NYSEMKT: SLV  ) -- got hammered. While the short-term outlooks remain murky, the longer-term view is far less certain. A strong dollar and gold prices at their lowest levels in years are giving investors pause, but the picture must be weighed carefully.

In the following video, contributor Doug Ehrman discusses factors on each side of the gold debate that are critical for investors to consider before deploying capital in the sector.

Aided by the Fed action last week, and with the American markets coming off new highs, investors and pundits alike are skeptical about future growth. They shouldn't be. Many global regions are still stuck in neutral, and their resurgence could result in windfall profits for select companies. A recent Motley Fool report, "3 Strong Buys for a Global Economic Recovery," outlines three companies that could take off when the global economy gains steam. Click here to read the full report!

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  • Report this Comment On June 30, 2013, at 7:37 PM, tomofsnj wrote:

    One think that I think is important to understand is how much they are attempting to hide inflation. This week they crowed about the huge increase in housing. Is that not inflation. Well it happens not to be mainly during the greenspan housing bubble they went to rent to measure cost of living. Rents have increased much greater than the huge price increases in housing but the talking heads do noto explain stupidity. It is like reporting weather. It only thing important is the guy how hires at the weather station likes busty woman. The financial stations like pretty woman who try like they will will never do a think to upset the apple cart. So they cry and crow about no inflation while they do not address the high cost of the George Washington bridge that their limo crosses everyday. They do not address the multimillion dollar condos they line in that were skid row a show time ago. I am sure they never mention the price of coffee which was $2 in manhattan twenty years ago. Plays on broadway cannot be had at the 1/2 price booths on time square. etc etc but i am to believe their is no inflation when the price of a car is close to 20,000 a year and congress just allowed all the student loans rates to double. Yes keep believe that the federal reserve hammered gold and then do not read that central bankers purchased 580 tons in the last two months. I am sure you see no problem with someone being able to force down prices when they want to buy the item but it is called communism. We are headed for a hard fall like Russia and I do not think Russia likes us so they will not help when we hit bottom

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