Wednesday, April 13, 2011

Will The Precious Metals Rally Continue if There is No QE3?

Let's attack this question from two angles, the fundamental economic and geopolitical environment, and from a technical analysis perspective.

First the fundamental and geopolitical perspective:

Clearly, Gold (and Silver and the Mining Stocks) has risen more than six hundred percent over the past decade, a decade that has seen fiat money supply rise dramatically domestically and globally. Over the past two years, U.S. money printing has exceeded all the money created from the time of the Founding Fathers through the Reagan administration. This fanatical printing of U.S. Dollars has debased the purchasing power of the Dollar, forcing precious metals to rise as a defense against this hyperinflation.

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