The price of gold is now testing its highs of 2012 on the technical analysis charts and the right mining stocks are simply exploding in value. It’s an interesting moment in this precious metals bull market, but almost all eyes still remain on the stock market instead of gold. But there is more happening than just the daily gyrations of the S&P 500. Something huge has happened this year in the bond market. The Federal Reserve has created an unlimited QE bond buying program to prop the bond market up. They are doing this because now 20% of the US stock market is made up of zombie firms.
This Fed action is keeping the economy from collapse, but it will in time lead to a falling US dollar and higher inflation. This looming future now makes gold, silver, and other metals necessary for diversification.
Maybe you don’t think things like that will happen. That’s fine – what is clear is that gold, silver, and mining stocks are beating the market. That’s just a fact and it’s why my top stock pick for the summer is in such a great position now. Find out about it by going here.
-Mike
