Putting an extra $14 trillion on top of normal government spending into a $20 trillion economy is a massive sugar high. It wasn’t a free lunch by any means; the national debt went up accordingly. But it still had a short-term stimulus effect.
Metals markets are caught between fears of Federal Reserve tapering and the forces of inflation. Price levels continue to rise in the U.S. and around the world.
It’s my predilection to believe that the Fed not only will not taper but will eventually be forced to increase the amount of money it is printing, I believe we’ll see the mining stocks outperform the general stock market by a wide margin over the next 12 months.
Compelling data in recent Commitments of Traders (COT) reports point to the emergence of a very large buyer in COMEX gold futures -- as many as 40,000 COMEX gold contracts, the equivalent of 4 million ounces of gold.
Now is definitely NOT the time to give up and dump your physical precious metal and/or your mining shares. Instead, you must believe your own eyes and intellect. Inflation and stagflation are here to stay..
If the Continuum continues we’ll see yields halt at or about the red limiters before some future exploration of the deflationary downside once again as the current inflationary operation unwinds.
While the BIS no longer may be assisting war criminals, by helping to suppress the gold price, and thus the prices of all commodities -- the primary exports of the developing world -- and by destroying free markets..
