Loading ...Smelling a Fiscal Blowout, Gold Starts to Warm
There was good news for gold bugs last week in The Wall Street Journal, even if it threatens a day of reckoning for everyone. Although Friday’s front-page story had nothing to do with bullion, the headline tells us why sunnier days are likely for anyone invested in precious metals over the next few years: Washington Puts Aside Fears And Embraces Debt. It is the word ’embrace’ that holds such promise — and menace — since it implicitly acknowledges that regardless of who wins in 2020, there will be no serious political opposition to the fiscal orgy brewing on Capitol Hill. The mountain of bogus money needed to stoke the revelry cannot but put upward pressure on inflation hedges, particularly gold and silver. That is why the rally in precious metals begun two weeks ago should be taken seriously.