It was more than a trifecta of events that sparked today’s sharp gains in both gold and silver. First and foremost is the global pandemic that has resulted in economies worldwide contracting. This led to central banks revising their monetary policies to be more accommodative as they attempt to diminish the contraction so that economies can start to stabilize and eventually begin to rebuild.
Secondly is also a direct result of the pandemic; massive expenditures from fiscal stimulus. The U.S. allocated $3 trillion to fund the “Cares Act” to help individuals and businesses gravely affected by the pandemic.
Which leads us to the third event, the recent presidential election, and how the outcome might affect the size and scope of any upcoming fiscal stimulus bill. Although they are still tabulating the votes and have not officially announced a winner it seems highly likely that the next president of the United States […]
November 6, 2020 (updated November 6, 2020) Published by StockMan