QE to infinity is back – What does that mean for commodities? [Video]

Commodity prices across the board skyrocketed from recent lows on Wednesday – posting their biggest one-day move this year – as The Bank of England reverted back to unprecedented “Quantitative Easing” measures, to avert a full-blown global financial meltdown.

In one of the most major U-turns in monetary policy, ever seen in history – The Bank of England went into full financial crisis mode this week, rushing out an announcement that the central bank was restarting its money-printing presses at “whatever scale is necessary” – officially confirming that “QE To Infinity And Beyond” was back!

The UK bank’s extraordinary new round of quantitative easing will involve suspended a program to sell gilts – part of an effort to get rapidly surging inflation under control – and instead revert to buying long-dated bonds at a whopping rate of up to 5 billion pounds ($5.31 billion) a day.

Economists have warned that the injection of billions of pounds of newly minted money into the economy could fuel even greater inflation. “This move will be inflationary at a time of already sky-high inflation”, which Goldman Sachs predicts will hit 23% by next year.

Central bank interventions of this scale have not been seen since the Wall Street Crash in 1929, the Black Monday stock market collapse in 1987, the Global Financial Crisis in 2008 and more recently, the 2020 Pandemic.

The Bank of England’s actions represent the first big intervention from a G10 central bank in this monetary cycle to avert a global financial crisis – And it may not be the last!

It serves as a reminder to policymakers around the world that any perceptions by the market of a policy error will be heavily punished. With the Federal Reserve and European Central Bank hiking aggressively into a weakening economy – the big question is who will be next to turn on their money printing machines?

Only time will tell, however, the one thing we do know is that extraordinary times create extraordinary opportunities and right now as traders, we are living in some of the most rewarding times ever in history.

Following The Bank of England’s announcement a long-list of metals from Aluminium, Copper, Palladium, Platinum, Gold, Silver, Lithium, Uranium and Zinc prices surged to multi-month highs – registering their biggest one-day moves this year.

The bullish momentum also split over into other commodities with energies to soft commodities notching up impressive double digit gains – And this could just be the beginning!

Throughout this month's reports we routinely highlighted that the commodity markets we’re on the verge of a massive breakout – presenting savvy traders with the ultimate opportunity to buy in at the lows. Once again, everything we identified has played out exactly as predicted!

Where are prices heading next? Watch The Commodity Report now, for my latest price forecasts and predictions: