Voltalia Ord Shs VLTAF

RE:QE ending would be the best thing for gold and gold stocks

[ALLEN4]

First, I do not think they can stop the QE in a way that does not create a catastophe for the country and a currency crisis for the American dollar.  Despite what the politicians would like us to believe the real economy simply will not survive if QE stops.  Even some genuine "tapering" would be a reality check that would end badly.

Second, I agree that inflation will occur eventually.  The key seems to be tied to the term "the velocity" of money.  Currently money is not flowing freely and remains in the hands of the bankers.  Once it is let loose on the real economy then inevitably we will have inflation.  I do not see how it can be otherwise.   Of course that is good and bad for a gold mining company because the expenses associated with mining will increase.  However, the overall impact of an inflationary period in our economy, something we have not experienced for a long time, should be very positive overall for the gold sector.  Inflation will return sooner or later, of that I have no doubt.