It's a very interesting proposition at the moment. The US Fed are about to announce 'inflation targeting an average of 2%' rather than up to 2%, and while it seems low at the moment, this essentially is giving them carte blanche for more quantitative easing, expansionary monetary policy, and further debasement of the US currency. Even for those who are anti-gold bugs or whatever, the facts are that there is a quorum of people who believe in Modern Monetary Theory and just want to continue printing money without limits - and all of this plays into upward pressure on precious metals. Tonight's discussion by US Fed is just another step in this direction.
Personally I think the past month has not really been a backward steps for precious metals, I think it's more of a retracement, testing and consolidation. The general momentum at least to me seems quite strongly positive. Even if a vaccine is found tomorrow, the US Fed and other central banks are saying record low interest rates for FIVE YEARS. It's ridiculous, it's probably going to ruin asset valuations, but that's their "plan". And as long as that occurs, I think the real price of precious metals will continue to go up.. and silver more than others, because it has a while still to catch up. It was 110:1 with gold, now 80:1, but still the average is 60:1 and could go as low as 25:1. Let's see.... tonight will be interesting!
