The Economy, Gold, Silver And Mining Stocks

MBA, Market Analyst & Author @ The Mining Stock Journal
November 19, 2020

As of last week, the Federal Reserve now owns 16.5% of the total amount of Treasuries outstanding and 18.5% of the total amount of mortgage-backed bonds outstanding. Without this massive amount of Fed intervention, interest rates would be significantly higher and the housing market would be in shambles.

The Fed’s balance sheet nearly doubled since March.  While the stock market has rallied to all-time highs since March, there’s still well more than 20 million people receiving unemployment benefits on a weekly basis. The economic bounce-back from the shut-down of the economy in March and April appears to have peaked in July.  By many measures, the economy is starting to contract in again in many sectors.

Silver Liberties and I discussed the reasons why it looks like the Fed is prepping the country for another big round of money printing, which means another big move higher in the gold, silver and mining stocks:

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Dave Kranzler spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, he traded junk bonds for a large bank. He has an MBA from the University of Chicago, with a concentration in accounting and finance. He currently co-manages a precious metals and mining stock investment fund in Denver. My goal is to help people understand and analyze what is really going on in our financial system and economy. Dave publishes the The Mining Stock Journal a bi-weekly subscription newsletter that features junior mining ideas as well as relative value ideas in large cap mining stocks.

 


Throughout history the ruling class has always sought to own gold and silver because they represent purity and longevity.
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