Gold Newsletter

03/01/2017 7:00 am EST

Focus: COMMODITIES

Brien Lundin

President, Jefferson Financial, Inc.

Gold seems to have a natural buoyancy to it late — suggesting that it "wants" to rise. Sell-offs have had a hard time lasting more than a day, with many being turned around within hours.

And gold has been able to rise at times even in the face of bearish factors like dollar strength or stock market rallies.

Importantly, our broader economic projection of higher inflation, a growing U.S. economy and a Federal Reserve that will remain well behind the curve are also being borne out.

With inflation already well over 2% and the Fed Funds rate at only 0.625%, we're facing years of negative real interest rates ahead. That is a very bullish environment for gold.

As to how to capitalize on this trends, I would point to our latest two recommendations — JDL Gold Corp. (Vancouver: JDL) and Stratton Resources (Vancouver: SI).

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