Cam Currie’s thesis is simple.
Central bankers and governments throughout the world have used and continue to use monetary and fiscal policies aimed at stimulating economic growth. For example:
In the United States, the Federal Reserve has purchased $4 trillion of government debt and mortgage-backed securities to keep interest rates artificially low, generating asset inflation in real estate and stocks and creating a wealth effect to stimulate growth. The result: an asset bubble similar to the one that burst in 2008.
In the European Union, interest rates are down to 0.25%. The result: well-intentioned policy that is unfortunately enabling and prolonging the inevitable deleveraging of unsustainable government debts.
And, despite intense global efforts, economic growth has been anemic. What if economies fail to accelerate to the point where growth becomes self-sustaining? What we are witnessing, on a global scale, is the biggest financial experiment in history. Is your portfolio properly positioned to protect you against the risks?
Adding a layer of complexity is China, where a slowing economy, allegations of bank corruption and escalation of bad loans on balance sheets are all components that can unnerve the financial markets.
The solution for prudent investors:
Gold stocks offer excellent protection and leverage and should be a component of your investment portfolio.