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Seeking Alpha/Bang for the Buck/4-29-2020
“The Fed and other central banks have long claimed they aren’t monetizing the debt since any bond-buying is temporary and the balance sheet will normalize over time. While those statements were questioned by many at the time, it would be difficult to make those claims today given the recent balance sheet expansion and how little the Fed was able to decrease the balance sheet before the u-turn during 2019. There are no absolutes in investing, but gold has historically been a good store of value over time, especially during extreme monetary and fiscal expansion. I fully understand there are few good options at this point for policymakers, I am not looking to suggest a better alternative, but I do think it is very prudent for investors to keep some gold in the portfolio at times like these.”
USAGOLD note: As we have said previously, few on Wall Street would criticize the steps the Fed has taken. On the other hand, a good many are preparing for its potential consequences.