Since the outbreak of the novel coronavirus, central banks have stepped in to support economic growth. With expansionary monetary policies, the global financial system has a liquidity glut. This has translated into a strong rally for equities and other asset classes. In particular, precious metals stocks have been in focus.
Why? Expansionary monetary policies imply weakening of currencies. This supports upside in hard assets like gold and silver. Therefore, it makes sense to consider precious metals stocks.