After the January 2019 US Federal Reserve meeting, it feels like seven years of biblical famine for gold and silver investors is finally coming to an end. The long cycle of promises of normalisation, rate hikes and future reduction of central bank balance sheets has come to a shuddering halt.
Monetary metals are freed from a headlock of hawkish forward guidance and, in my view, look ready to embark on another secular bull market run. It is notable that since the famine cycle started and gold topped out at around US$1,900/oz in 2011, central bank balance sheets have carried on growing. One wonders what levels gold and silver measured in US dollars can reach this time round.