"GoldMoney's James Turk interviews Félix Moreno de la Cova, who is a studied economist, trader and GoldMoney contributor. They talk about the recent action in the precious metals and currency markets.
With the announcement of QE3 by the Federal Reserve last week the prices for gold and silver continued to surge higher. However Félix points out that September is traditionally a strong month for the metals which is why they might have rallied even without further monetary stimulus. He states that after a year of consolidation the stage is now set for much higher prices.
He points out that the competitive devaluation of the major currencies is continuing which in the end will lead to the destruction of all fiat currency. While the new liquidity injection by the European Central Bank helped to boost the markets in the short term and caused the euro to rally against the dollar he expects that the markets will soon again start to focus on the fiscal problems in Europe - none of which have been resolved yet.
They emphasise the extraordinary situation of negative interest rates and point out that gold prices are far from being overvalued right now despite the fact that gold is flirting with new all-time highs in euro terms. Félix is also extremely bullish regarding silver, though pointing to the high volatility. He states that accumulating precious metals will continue to be a great strategy going forward."