The announcement of new stimulus measures by the European Central Bank has sent buyers into gold and silver, as well as the related miners, in a way that hasn’t been seen since early May. If it continues, it could mark a significant change in trend for silver and gold stocks, which have been under pressure since March.
A combination of diminished geopolitical concerns (the Ukraine situation has largely dropped off the radar for most investors), a drop in stock market volatility, and a steady decrease in inflation expectations have all played a role.
But now, some of this is starting to shift.
Inflation expectations are creeping up as the U.S. Consumer Price Index hits 2% while the ECB’s actions confirm its willingness to respond to the very real threat of deflation in the eurozone. And while stocks keep powering higher, I am starting to see some volatility in the currency markets.
All of this is causing gold and silver to perk up — and sending buyers into the following three gold stocks: