What Quantitative Tightening Means For The Prices of Gold & Gold Stocks

Photo: What Quantitative Tightening Means For The Prices of Gold & Gold Stocks

VRIC 2019 Featured Speaker: Adrian Day

The long period of Quantitative Easing following the credit crisis of 2008—ultra low interest rates and huge increases in central banks’ balance sheets—had consequences, expected and unexpected.

In like manner, any period of tightening by banks, which has already commenced in the United States, will have significant consequences.

To a large extent, these will involve the reverse of what was experience during easing, and the last several weeks have started to give us a foretaste of what is to come, with broad stock market sell offs, the collapse of previous high flyers, and gold stocks moving up.

Why it's Important: In addition to an overview of some of the consequence of QE, still not generally recognized—we argue there is a clear path from QE to the election of President Trump—we will look at the implications and possible consequences of Quantative Tightening (QT), the possible path of central banks’ policies ahead, and specifically what QT means for the prices of gold and gold stocks.

For those who believe reflexively that rising interest rates are negative for gold, there is a surprise—and a pleasant one—ahead.

The investment opportunity: Being on the right side of the market, especially when the majority is wrong, is a crucial element in successful investing. Since central bank policy clearly has a major effect on markets, understanding where the banks are going is crucial. In addition, we will look at a handful of companies that represent compelling opportunities in the current environment for outsized returns and minimal risk.

Don’t Miss Out: This is an incredible time to come catch Adrian at The World’s Largest Resource Investment Conference that happens only once a year. Register for VRIC before it's too late.