Precious Metals Poised To Rally For Draghi QE

August 27, 2014

Bernanke pumped precious metals higher. Will Draghi do the same?


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Precious metals love QE. Gold and silver rallied hard during the first two rounds of Bernanke's quantitative easing. Now, the whisper on the street is that Draghi is readying the ECB for its own quantitative easing. Given recent history, more easy money should help propel precious metals higher.

Gold and silver gained 35 percent and 66 percent, respectively, through the first round of Federal Reserve quantitative easing, then another 11 percent and 39 percent, respectively, through the second round.

Fortunately, investing in precious metals has never been easier. For a 0.25 expense ratio percent per year, investors in the iShares Gold Trust (IAU | A-100) own a claim to gold bars protected in bank vaults. Or, for 0.30 percent per year, investors can stake a claim on silver with the ETFS Physical Silver ETF (SIVR | A-100).

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