Hi Bbrad, you are quite correct about QE and consumer prices but...

Hi Bbrad, you are quite correct about QE and consumer prices but massive levels of QE has set off the mother of all inflationary bubbles in global bond markets which is now spilling over and inflating stock markets globally via the search for yield (and this despite the very average economic conditions on the ground level).

I reckon it's trillions of dollars of algo driven central bank fuelled liquidity that completely dominates today's "investment" markets and it's this humungous amount of electronic money that puts other factors such as inflation, employment, China, physical gold vs paper gold, economic reality, etc. a very distant second. It's all a gigantic casino now and I'd wager that some of this super hot money will once again revisit gold and other commodities as the bond and non-commodity equity markets become fully bubbled and tapped out.

When will this happen and to what degree? I wish I knew, but given the hammering that has taken place in gold equities I reckon it's a good time to at least run the ruler over gold producers (and others) and be prepared to act quickly should the hot money decide that gold is back...and it's shinier than ever.