The Fed will be compelled to print a lot more money this year under the guise of “stimulating the economy.” That money will be funneled to into the financial system to fund massive amounts of Treasury issuance. Printed money not used to fund Treasury issuance will flow into “things” – primarily commodities and maybe stocks. The best way to take advantage of this is to buy physical gold and silver and mining stocks.
Bill Powers (Mining Stock Education) and I discuss my good and bad mining stock picks in 2020 and I discuss a couple of the stocks I think have the potential for huge gains in 2021:
Buying physical gold and silver – not GLD or SLV – should be your first priority in seeking shelter from the eventual fate of the dollar. But mining stocks offer the potential wealth enhancement as well “optionality” upside to the prices of gold and silver. If you would like some ideas for investing in mining stocks, take a look at my Mining Stock Journal.
Hello Dave. I hope you are well. It has gone pretty quiet in the comment space recently. Thanks for your articles. I have watched the markets all day as I usually do and find that we are at a cross roads. The yield on the 10 year has spiked spectacularly. The USD shows great signs of weakness since it dropped below 90 on the DXY. The question I see as the most important one is: Will the Fed protect the USD or ultra low interst rates? The fall in the Dollar has persuaded foreign holders of US bond to sell. The Fed can print money to support the bond market but they would have to buy everything: Federal, state, municipal and corporate bonds. The Fed would become the hostage of the bond issuers. They could focus on protecting the Dollar but this will be difficult since Biden will want to paper over his illegitimacy with cash. Either way they can’t win. Your forecast seems to be solid.
“Money Printing, Inflation Drives Gold And Silver Higher This Year”
It should. I guess the question is how many times can they reload short positions and drop the metals prices…like today?