What happens when the Federal Reserve is forced to step in and apply more band-aids...
By Eric McWhinnie
"...Looking in the rear-view mirror, patience has clearly been a smart strategy for investing in precious metals. Gold and silver both skyrocketed off their lows made in 2008 as central banks turned to money printing as a band-aid for a bullet wound. The dollar is currently experiencing strength, but what happens when the Federal Reserve is forced to step in and apply more band-aids, as it did with QE1, QE2, Operation Twist and European swap lines?
"While some may expect bullion demand to be significantly lower from falling gold prices, demand for gold as an insurance policy on fiat currencies remains high. For the first-quarter, gold investment demand jumped 13 percent to 389.3 tonnes, compared to 343.5 tonnes a year earlier. Earlier this month, Russia’s central bank also announced it will keep buying gold in order to diversify foreign exchange reserves. Even though precious metals can be volatile at times, it is better to have your insurance a year early than a day late..."