Well it’s been an exciting and fun summer watching gold and silver markets switch into bull mode and rebound from a dismal mid-cycle bear correction that lasted for four and half long, painful years.
But if you feel like you’ve missed a “golden” investment opportunity, well don’t you worry because there’s still plenty of time to make money and you ain’t seen nothing yet!
Physical gold and silver are still way below their all-time highs, and so are the mining stocks, ETF’s and other assets pegged to the precious metals. And I’m talking nominal highs… if adjusted for inflation the opportunity for higher growth is truly once in a lifetime.
This precious metals bull market has endured a good eight months now and it doesn’t look like it will be slowing down anytime soon. There are too many macro economic conditions that play in their favor and will keep them on a positive trajectory.
Poor jobs reports, negative rates in Europe and Japan, stagnate economies, and a whole host of other factors contributing to a general state of uncertainty have kept the Federal Reserve from raising interest rates for eight years. (They did raise 0.25% but come on, that was just for show).
Investors are starting to question their credibility and now realize just how limited are the tools they have to stimulate the economy.
Gold and silver had been hit so hard during 2011 and 2015 because it was assumed that low interest rates were simply a temporary measure to get the economy back on its feet and investors felt it wasn’t necessary to hedge with precious metals, which has historically been what they do in a low interest rate environment.
Now that helicopter monetary policy has become the norm and doesn’t work as good as it used to, investors have become much more nervous and worried about increased financial risk and have returned to gold and silver as safe haven investments.
Check out this video where Joe Foster, Portfolio Manager and Strategist for Gold and Precious Metals from VanEck, explains why he thinks precious metals have returned to this historic, secular bull market that started way back in 2001…
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