With much more money printing coming down the pipeline—and gold bullion significantly underperforming the stock market—investors can look for a catch-up move in precious metals going forward.
Last week’s testimony by Janet Yellen, President Obama’s choice for the next head of the Federal Reserve, was quite interesting. What I also found fascinating was the reaction in various markets.
Yellen was testifying in front of the Senate Banking Committee, and when asked about the possible formation of bubbles as a result of the Federal Reserve’s quantitative easing program, she stated point-blank, “By and large, I would say that I don’t see evidence at this point in major sectors of asset price misalignments.” (Source: Bloomberg, November 15, 2013.)
I certainly don’t have any experience working at the Federal Reserve, but I find this hard to believe. ...