Given persistent pandemic-induced inflation, central banks’ predilection for controlling it through quantitative easing (QE), and elevated geopolitical tensions across the world, including rising worries about U.S. dollar weaponization, the case for investing in gold, especially through junior exploration stocks, is the strongest it has been since the 2008 Great Financial Crisis.
The crisis in 08′ cut the S&P 500 by 48 per cent in just over six months, following irresponsibly lax borrowing practices in the sub-prime mortgage market, which led the U.S. Federal Reserve to purchase billions in treasuries and mortgage-backed securities under QE, lower interest rates to between 0 and 0.25 per cent, and drag the global market down in conjunction with the devaluation of the world’s reserve currency. These moves dampened cash and bond yields, while seeming to foretell further losses in stocks, driving…
