when
measured by the broad commodity market indices;
however, we suspect that that shall change rather
materially as more and more people begin to
understand the inflationary implications of the Fed’s
decision. What the Fed has done is put a strong bid
under the commodities such as copper, steel, perhaps
the grains; perhaps too energy, but most certainly the
precious metals for the long and foreseeable future.
We may have been forced to the sidelines in the gold
market in recent days, but we shall be forced back to
the long side of gold this morning, for the Fed has
signaled that it shall err openly and consistently upon
the side of inflation rather than deflation. We have held
our “insurance gold”… that which is in the vault and
that which is our hedge against economic collapse…
but we’d tossed aside our “trading” gold and hoved to
the sidelines over the course of the past two or three
weeks. Our exits looked wise, but as good traders
must, we are prepared to move from the sidelines to
the fray when the markets tell us we must. They are
and we are; it is that simple:
