by David Brady
There may be some repetition in what I am going to say today with regard to the medium and long term prospects for precious metals and miners, but given recent events in the very short term, it looks like we are close to turning the corner in metals and miners. Simply put, the turn up is almost upon us—in the next few weeks or months at most.
Recently, both the IMF and Fed have either explicitly or implicitly alluded to the prospects of vastly more fiscal spending and therefore debt on governments’ balance sheets worldwide, and that means dramatically more money-printing on the part of the central banks to buy all of that new debt and then some. What this means for the dollar relative to other currencies is anyone’s guess, as they are all being debased at the same time. I still believe that the dollar has the greatest downside, as it has the most to lose being the global reserve currency, a status which is becoming increasingly fragile when confronted by the IMF’s call for a new Bretton Woods Global Monetary Renegotiation. But relative to real tangible assets such as physical Gold and Silver, the prospects have never been better. Like many reputable analysts, I see an explosion in prices ahead once we get the stimulus-on-steroids that I consider inevitable. It’s only a matter of time. Or rather than time, I should say the level of the S&P. The Fed et al. always need an excuse to print, and that typically is a sharp drop in stocks.