It would be difficult to overstate the drama of this monetary stimulus(although we favour the word debauchery).
Yet as the Japanese monetary authorities declare a holy war against deflation, it would only be fair to draw attention to the colossal opportunity being presented as the antidote to monetary intemperance, namely gold and gold miners.
There is a clear mismatch between the prices of gold and silver mining shares and spot prices of gold and silver. But as to why the miners are trading so poorly relative to the physical is unclear to us.
It may be because the market expects the price of gold and silver to fall (not a belief to which we subscribe, given current monetary events for example in Japan).
Read the complete article at The Sovereign Man here.
Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.