FED Raises Interest Rates by 0.25% – Gold and Silver Rise prior to the Announcement


Welcome to illuminati silver, we tell you
the truth about silver. Today is Wednesday 16th December 2015 and
we are briefly covering the FEDs announcement that it has raised interest rates by 0.25%
After two thousand, five hundred and fifty six days of record low interest rates, the
US Federal Reserve has at last raised interest rates by 0.25%
“Given the economic outlook, and recognizing the time it takes for policy actions to affect
future economic conditions, the committee decided to raise the target range for the
federal funds rate from ¼ to ½ percent,” the FOMC’s post-meeting statement said. “The
stance of monetary policy remains accommodative after this increase, thereby supporting further
improvements in labor market conditions and a return to 2 percent inflation.”
Many market commentators have predicted this rise. In fact, earlier today, Michael Gapen,
Barclays’ chief US economist, said that the Federal Reserve’s goal is to raise interest
rates and avoid causing any market turmoil. Speaking on Bloomberg TV, Gapen said the Fed
has a “very real and very tangible” fear of spooking investors.
Jack Welch, the former boss of General Electric, stated on CNBC today, that rates should have
been raised three months ago – before the rout in the commodity market got underway:
He added: “It would have been better to go last time actually. Conditions were better.
The economy is not any stronger. The commodities have gone further down.”
Until now Policymakers have been at pains to stress that their actions were dependent
on the state of the economy. The most recent bulletins from the labour market which showed
211,000 jobs created in November and inflation (a core measure hit 2 per cent last month)
gave officials the extra confidence they needed in order to move rates higher today.
European stock markets having already closed before the announcement were made and it shall
be very interesting to see their reaction when they re-open tomorrow.
The Dow Jones Industrial Average Index jumped 160 points in early trade, fell back and rose
slightly on the announcement and is currently standing at 17,625 up 101 points on the day
so far. Both gold and silver rose prior to the announcement
up 1% and 2.5% respectively and at the time of this video gold stands at $1070 and silver
at $14.19 So what do we make of this? Well, the rate
rise was expected. Despite what Peter Schiff and others claimed that there was no way the
FED could raise rates – they have been proven wrong. Yes to some degree they were backed
into a corner. The dollar is slightly up on the day, though traditionally when rate announcements
have previously been made, the reaction has ironically been to fall slightly. We shall
no doubt see a little turmoil for a couple of days, but we hold fast to our view that
the short term trend for gold and silver is still down from these levels.
We hope you have found this video helpful and informative, and would appreciate it if
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bulletins and offers in the future. Disclaimer: Illuminati Silver owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.

55 thoughts on “FED Raises Interest Rates by 0.25% – Gold and Silver Rise prior to the Announcement

  1. @ Illuminati Silver: do you still see 12$ silver as the sustainable value to which the price should tend? Is that why you still find downward pressure in the market?

  2. They never had any street cred as far as I'm concerned, they are just a bunch of incompetent criminals fraudulently signed into law while congress were on Christmas break in 1913. They should all be hanged for treason.

  3. Was watching the price rise in Silver up from $13.80 to $14.17 since the announcement. Is the interest rates rise of 0.25% sustainable or will they have to lower it again in the New Year?

  4. Hi Illuminati Silver, Thanks for the update. But just a small correction. Peter Schiff did make it clear that the FED may increase rates only slightly to "keep face". He called it the "beta version". He was right for a long while, I even won a bet over it! I've blogged your video, if thats ok with you!
    http://silverinvestornews.blogspot.ch/2015/12/fed-raises-interest-rates-by-025-gold.html

  5. Peter Schiff "It seems to me the only reason that they're (the Fed) going to raise them (interest rates) is to prove that they can.. and to kind of, give a vote of confidence to the recovery." Episode 122 of his podcast Dec. 2, 2015. Peter Schiff has been noticeably less assured recently that the fed was not going to raise rates. I've felt that even he was leaning toward the possibility of them raising rates more than previously.

  6. Would have bee nice to have been "a trader" over the last three days.Could have snagged some silver on Monday or Tuesday and sold it for a 50-60¢ profit by noon today. In fact, I'm sure that quite a few "paper silver traders" did just that.

  7. IS can you clear one thing up for me, when you say short term how long do you mean? as this term means a different time scale to different people. BTW Gold is expensive compared to oil at the moment or is oil cheap!

  8. seems like the fed always raises or lowers interest rates prior to an election I used to bank on it when I sold real estate for a living if rates were too high they always went down on election year and now to make the economy look good they go up. On a side note Illuminati you're right darkness was first. and you know who gave it order, definition, boundaries & light.

  9. My take is that Gold and Silver are signaling that inflation is on the way. Additionally, at some point another crisis will finally ensue and they will have to QE in some form or another once again.

  10. So here's what I think, I will start with the question-is it better to have deflation or is it better to have inflation when you have an entire nation buried in debt. I believe the correct answer is inflation is better, it is the only way to have any prayer of paying your debts. The new money is worth more than the old money. For savers such as myself, I am damned if I do and damned if I don't. However for the majority of citizens deep in debt, there are two ways out default or inflate. I'd be interested to hear if illuminati silver agrees or disagrees with this statement. Keep up the good work guys.

  11. The FED raises interest rates but not where they need to be raised. Using people's savings as your own private fiat reserve is one of the most idiotic moves in history. This is especially horrendous when they raise the interest rates making money with your money.

  12. I love it now I even get a bigger income tax deduction.. its about time I have been making tons of money using there 3.25 percent free money for years..

  13. The one and only reason that the fed hiked rates today was in an attempt to bolster the confidence of market participants and thereby reduce market volatility. Economic fundamentals did not justify such a move. It was, literally, a CON-fidence trick. No longer can commentators posit the question "if the economy has recovered then why hasn't the Fed raised rates for 9 years?" The clocks have been reset. The most vocal critics of the Fed just had their wings clipped. The subdual of those critics will create a more positive information space which the Fed will use to extend and pretend.

    Put another way: It is the 15th of April, 1912. You are aboard the RMS Titanic. The hull has been breached by a collision with an iceberg. Passengers are beginning to panic whilst trying to get into lifeboats. The captain has just ordered the ship's band to the forward half of the boat deck to play some soothing music and try keep passengers calm. No-one is fixing the leak. No-one can. Oh, and there aren't enough lifeboats for everybody — because the ship was deliberately designed that way.

  14. The Fed are in a damned-if-they-do, damned-if-they-don't situation. Rates need to be higher so that there is room to cut them later if a new recession emerges, and because pension funds have nowhere to go for safe yield, and because overly cheap money is flowing into unproductive places such as property bubbles and share buy-backs. But the economic fundamentals hardly justify a rate rise and the huge quantity of debt will only become more expensive to service. The central banks are desperately hoping that inflation will rise so that the debt can be slowly inflated away.

  15. My guess : first 6 months of 2016 : Silver $13…gold $1000…dow above 18,000 { but very choppy up and down movement along the way to that level} …..Deflation isnt going anywhere for the near term…and the dollar will stay strong for the near term.

  16. Im hoping that buy BLACK FRIDAY in 2016 [ about 12 months from now} silver will be @ 12 a oz….that is my next purchase point on this downward cycle.

  17. I would love to see $2 incremental drops in silver price..in 2016..$12….2017. $10 AND .2018…$8 per oz….but ill be surprised to see it break below $10 per oz..and stay there for any length of time . If it hits $10 a oz in 2017….I will be making a substantial purchase .

  18. IMHO…the easy part for investing in silver, is now approaching. Deflation can only take it so low…then it has to reach its bottom and stabilize. Half of the battle in silver investing ,was having the discipline to NOT buy it, as it fell from $40 to $30 to $25 to $20 to $15…if one was able to refrain from purchasing at those levels…then there seems to be very little downside risk from here on out…if you get in it @ $14 or less levels…and can hold it for a minimum of 10 years or more.

  19. Silver, illuminati…you had said that you would be a silver buyer, if it hits $12-$13 range { which we agree is on the horizon} Can you give us a idea of your plan of attack …like how much will you be buying at one time, at those prices..and will you mainly go with generic silver and lowest premiums…or go for silver eagle monster boxes, etc ?

  20. here we go. fed easing it in till 2 % in a world down . they say after a 7 year CRISES . seven year debt cycle goes back to . hmm 2008 bail out . kool huh. wish i had funny money to back a truck of silver up my drive. 80:1 gold to silver my eye

  21. Do you think we could see Silver under $13/Oz by Christmas or Years end? That would make for a Very Merry Christmas Indeed 🙂

  22. Looks like gold is gonna get slaughtered today . Sure looks like $1000 gold is on its way for the 1st half of 2016. Some anaylsts are predicting $20 a barrel oil…if that happens, then it is possible to see $800 gold and $8 silver….DEFLATION SHOWS NO SIGNS OF SLOWING DOWN…

  23. In a attempt to keep track of a couple of well known anaylsts…
    Martin Armstrong is predicting gold /silver to go lower…but for DOW to go much higher…he says whenever FED raises rates, its usually bullish for DOW..

    Harry Dent predicts gold/silver to go much lower…but he also predicts we will see DOW at 6000- 7000 VERY SOON…he says 2016 will be the worst year EVER for DOW. Harry Dent has been correct on his predictions of MASSIVE DEFLATION and the dollar getting much stronger, in this current cycle. However, I will be shocked to see the DOW drop from 17,000 to 6,000 in 2016-2017…like he predicts. Such a selloff, would represent a complete implosion.

  24. The thing to keep in mind, with most of these anaylsts, is they NEVER seem to discuss their numerous failed predictions. When they give interviews or write articles, they usually focus on the few predictions they got correct , which makes them seem more " prophetic" then they truly are. Harry Dent was on ALEX JOnEs , YESTERDAY…and he never mentioned how he had been on alex jones show 2 months ago, and advised everyone to get out of the stock market/ DOW, because he was confident it was gonna collapse within a couple weeks.

  25. It looks like, the DOW may go unto a temporary bull run after this rate hike…it was up strongly yesterday after the announcemnent..and dow futures are up today nicely. The big question seems to be if the DOW will make new yearly highs from this point on….as far as metals are concerned, most logical people seem to be confident they can only go lower for the near future. Anyone that tells you that $5000 gold and $100 silver is gonna happen soon, is a person to be very leary of.

  26. I would say pundits like Peter Schiff and Geralde Celente, have been terribly wrong with their predictions about gold/silver over the last few years. They seem to continually claim that metals will soon go much higher . Because of their poor track record , I usually ignore their predictions. If the DOW goes much higher, in 2016-2017 , like martin armstrong predicts, then he will become my new favorite analyst.

  27. Silver illumanati..what is your prediction for the DOW ? do you think it will make new highs for the next 2 years { like armstriong predicts} or do you agree with harry dent, that it will collapse within 2 years ?

  28. WOW…gold hit $1046.90…and silver $13.60….HEY SILVER ILLUMINATI..WHERE ARE THE METALS PUMPERS, THAT USED TO REPLY ON YOUR VIDEOS, THAT YOU WERE WRONG IN PREDICTING METALS WOULD GO LOWER ?

    We may very well see silver hit $13 and gold hit $1000 by end of Jan. 2016….Even the DOW has reversed and went negative today….silver/ gold doesnt seem to have any stability…and it continually takes out previous lows set months earlier.

  29. All the short term rises in metals, for the last 4-5 years, have been PUMP AND DUMP rises….and it looks like that trend is still going strong. We can expect any rise in gold /silver, will be followed by a bigger drop resulting in newer lows and lower trading ranges.

  30. IMHO..this is a VERY important day for metals…anyone that has been following the charts , knows that both silver and gold, have hit new trading lows today….IMHO..this is a extremely bearish event….also factor in that once again, the DOW is down triple digits…and silver/ gold is not going higher, but making LOWER LOWS. ….2016 is setting up to be another awful year for metals. Be very cautious of ANYONE that tells you that :

    1. silver/ gold are in short supply
    2. silver and gold cant come any lower in price, because it cant be mined at lower prices
    2. silver/ gold will very soon skyrocket in price.

  31. My half assed predictions for 2016 are : gold will not be trading above $1100 { for any length of time } and silver will not be trading above $14 { for any length of time} ….both metals seem determined to get to the $1000 and $13 mark by early 2016. If that werent bearish enough , its probable that both metals wont even be able to hold onto those levels…and will make lower lows. At this rate…$10 silver now seems to be VERY possible. And just think…a few years ago, there were countless pumpers on the internet, claiming that silver could NEVER come below $20 again because the mines would be forced out of business.

  32. Man, I have been swimming against the current. Guess I'll be stacking more paper for a while before the next buying round. You've been pretty spot on with the predictions but I could not wait. I got eager and started buying though I have gotten some great deals pier to pier. I have the gold bug lately too and have and will continue to buy small amounts. Your channel is awesome. So far my favorite weather man.

  33. I have watched a few of your other videos, nice work. Very informative and straight forward. I like that. I have learned to better understand silver, what it means and how it works. Since I am new to stacking, I find your videos very helpful tool toward building a positive investment.

  34. Peter Schiff has stated many times that the Fed can't raise rates and many times he has elaborated on that comment and explained that yes, it's possible they could but, not without having to bring rates back down a short time afterward revealing the economy has not "recovered" and cannot withstand rate increases. If the Fed continues to raise rates without reversing course or plunging the economy into a recession then Peter Schiff was wrong, but I'm betting the Fed is one and done or going to reverse course like Peter has said. The Fed is tightening into weakness.

  35. they want you to sell there trying to scare you just like 2015. i remmember my silver stock exg went down 80% in 2015 and boom it went up 550% in 2016. there trying to scare you into selling your silver. go drink a beer it will go back up lol

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