You see, investors aren’t buying gold hand-over-fist today because they’re worried about a greater economic fallout from the coronavirus. No, they’re buying in anticipation of the flood of central bank stimulus that is all but guaranteed by the effects to date.
Yes, further bad news from the spread of the virus will help boost gold. But I think investors should remember that the U.S. markets were already searching for some excuse to demand “more cowbell” from the Fed, and this epidemic is providing the perfect justification.
Have no fear, the Fed is going to obey the markets and provide the rate cuts and QE that they’ll demand. They have no choice, because after over a decade of stimulus, they’ve transformed the U.S. economy into the stock market.
The bottom line is that money is going to get even easier, and cheaper, in the weeks and months just ahead. And that’s going to light a rocket under gold, silver and junior mining stocks.
If you’re not positioned for this big move, it’s not too late to get on board.