General Stock Ideas

[bigworld]

GFP: Gold and silver have been disppointing these last 5 months. But I have not lost faith. I am still buying. My primary target right now is accumulating the small royalty company SAND (Sandstorm). I am overweighted in precious metals but underweighted in royalty companies. I have some Franco Nevada and Wheaton. Now I'm going to accumulate some SAND. Maybe I'm delusional. Maybe just stubborn. But I refuse to believe that the precious metals won't eventually catch up to the other base metals in percentage gain terms. With the $1.9 Trillion "stimulus" bill getting finalized, to be followed shortly thereafter my a gargantuan "infrastructure" spending spree...it's only a matter of time before inflation becomes the primary worry of average people. Gas prices are rising in tandem with oil prices. International container shipping has gotten much more expensive for several reasons. That's going to be priced in to consumer goods. Food prices are rising rapidly around the globe.

With the artificially low interest rates of @ 2% the Federal Government is paying about $500 Million in interest. If that pops to 4% that would dent the budget for $1 Trillion a year in interest. The Treasury will only collect about $3.5 trillion in taxes this year. The math doesn't add up. The Fed HAS to keep rates low. So yield curve control will be implemented, with the Fed buying Treasury debt all up and down the curve. That will be bullish for precious metals.