The effect of QE2 on Stocks, Gold and Silver

[Image Source: etfguide.com]

What will be the Effect of QE2 on Stocks, Gold and Silver around the World?

The US Federal reserve government has announced QE2 (Quantitative Easing 2) on Wednesday, 2nd November 2010. And according to this QE2, the US Government will print US $ 75 Billion every month over the year 2011 totaling US $ 600 Billion.

You can see in the above chart that, After QE1 in March 2009, the S&P gained by +79% up to now. So you can imagine the effect of QE2 in the future.

Tremendous amount of money is going to print out of thin air in the entire 2011 and this newly printed money will shoot up the price of gold, silver and stocks around the world.

In my opinion, its time to start investing in the stock market and precious metals like gold and silver because over the period of next year, all of these asset prices will go up and give excellent returns.

If you have never invested in stocks than this is the best time to start investing as the price of stocks from all around the world will go up. The interest rate in USA is just 0.25% means the big banks and large financial institutions can borrow money from the US Federal reserve at just 0.25% interest rate. This means that the entire world is now filled with the liquidity.

So its time to buy stocks, gold and silver…!!!