You really have to focus on the big picture and think deeply about whether this enormous liquidity that’s been placed into the system is there on a permanent basis, or whether these central bankers can actually start withdrawing it. My firm answer is no when it comes to their (central banks) ability to gracefully exit QE. In fact I just wonder if they can ever exit.
But right now the markets don’t see it that way. The markets have built into them a lot of hope, wishful thinking, and a lot of people drinking the Kool-Aid. When that music stops, investors won’t have a chance to get into gold. At this point many gold investors have become very weary of the pain of this extended correction, but the idea that a person can wait for just the right moment for the markets to perceive that these public policies are bankrupt and hopeless, that’s a flash point that I don’t think anybody can predict on a momentary basis.
Read the complete article at King World News 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.