Today the September Federal Open Market Commitee minutes were released. If anyone had any doubts about quantitative easing round 2 (QE2) coming later this year, they have officially been put to rest. Federal Reserve officials gave a general sense that monetary-policy easing is just around the corner. Even as commodity prices are exploding, the Federal Open Market Committee viewed current price inflation trends as “unsatisfactory.” Their view of course is that price inflation is too low and that more inflation will be needed to stimulate a weak economy. A member of the FOMC noted that unless the economy strengthened soon, they would have to take appropriate action. One of those actions discussed was the possible purchase of more government bonds. Of course what wasn’t discussed was how these actions will affect the U.S. dollar which is currently in a free fall. Looking at the chart below you can see that even priced against other fiat currencies the dollar has seen a sharp downward trend since the summer.

The dollar index is down 12% since June 2010

As promised we will be announcing some of our favorite gold and silver mining picks shortly. We have literally spent the last three months going over hundreds of mining companies, reviewing their financials, speaking with company representatives, and looking at the potential of their future projects. Please be patient, we promise that it will be worth the wait! With so many companies it’s important we find the right one, especially before QE 2.


Gold is up 8% since we suggested it on September 9, 2010.

Silver is up 26% since we suggested it on August 19, 2010.