our politicians and central bankers are out of control. National debt is skyrocketing around the world and money is growing at a rate far outpacing even the inflationary 1970s. You can see that on the following chart.
The dubious monetary policy will have consequences
It shows you the percentage change in the US money supply M-2. As you can see, the US Federal Reserve has increased the money supply by 26% in the past 12 months. This irresponsible, even dubious policy will have unpleasant consequences from which you should protect your wealth.
US money supply growth (M-2) in%, 2013 to 2020
The money printing machine is also running at full speed, although financial history shows that printing money does not solve any problems.
Source: St. Louis Fed
Signs of all major inflations
As the Swiss professor Peter Bernholz has shown, all major monetary devaluations in the past have the following things in common: A sharp rise in national debt, which was largely financed by the central bank. So exactly what we are currently experiencing on a large scale. With this in mind, it would not be a surprise if the result of this policy were strong currency devaluation this time too.
As a clever investor, you shouldn’t be surprised by this development, but arm yourself with suitable investments. In the past, gold, silver and mining stocks were the best choices in times of high inflation.
My gold price range indicator is on buy
My main tactical tool for analyzing the precious metals sector is my gold price bands indicator. He has always served me excellently in identifying excellent medium-term buying opportunities.
In early August 2020, when the price of gold was trading above $ 2,000 an ounce, this indicator announced a correction. Around four months later, he then gave a new buy signal. This announces new highs for gold and selected mining stocks.
Buy selected precious metal stocks now
From a fundamental point of view, numerous gold and silver mining stocks are valued very cheaply. Profits are bubbling up, and a further rise in the price of gold will reinforce this very positive development.
From a technical point of view, some of the mining stocks I prefer are giving very clear buy signals that point to high price gains. Don’t let these opportunities slip by. You can read about these stocks in my stock market letter Crisis-proof investing – now 30 days free of charge.
I wish you a successful week,
Claus Vogt, Editor-in-Chief of Crisis-Safe Investing
P.S .: I also recommend reading my current thematic issue “Undervalued, bombed out and extremely unpopular: The classic energy sector and its opportunities”.
P.P.S .: If you want to get through this crisis week after week, please request the free Claus Vogt market commentary today hereeasily with your email at.
PERSONAL-FINANCIAL.COM publishes analyzes, columns and news from various sources in this section.
PERSONAL-FINANCIAL.COM AG is not responsible for content that is recognizable by third parties in the “News” area
This website has been discontinued and does not adopt it as its own. These contents are in particular through
a corresponding “from” mark below the article heading and / or through the link
“To read the full article, please click here.” responsible for
this content is solely the named third party.