HOPE SPRINGS ETERNAL
It would appear that the Federal Reserve has been successful in stemming the drop in the stock market. The Fed is buying trillions of Treasury debt. This is newly-created money employed to keep bond yields low and stock prices high. There will be trillions more QE and debt monetization ahead. You would expect a big run in gold and silver given the amount of monetary expansion worldwide. We shall see if history repeats.
This week, I was working on a TV commercial that offered this advice: “Put 5 to 10 percent of your net worth in gold and silver as a hedge against currency debasement and other economic problems.” That only seems prudent with COVID-19 shutting down the economy and fostering losses so large they can’t be comprehended. This is one for the record books and everyone is likely to suffer because of it.
Once again, some of the articles in this newsletter paint an extreme picture of what lies ahead. We aren’t trying to frighten you, but we do believe you should own silver and gold. Our silver analyst Theodore Butler informs me that his current study of the futures market indicates the best set-up he has ever seen. He is more bullish than ever. Nobody wants silver and gold to go up more than we do. We want to profit personally, but we would also like to be vindicated for the advice we have given. If we can offset other losses and have our customers see profits that will be gratifying.