Some analysts have said that higher interest rates will be bad for gold, which pays no interest. But that did not happen in the late 1970s when interest rates rocketed. In fact, people bought gold to protect against inflation and worried that interest rates were negative after allowing for inflation. For the 2000s read the 1970s.

This was the most positive gold market in living memory. So if the idea of the US again needing to inflate its economy and devalue its way out of debt rings true then any investor should be buying gold or silver.

That is why precious metals still look a great buy this summer, and this might well be the last buying opportunity for this asset class before the real boom gets going this autumn.


Maximum leverage
Then you will likely find that today's under-priced junior explorers suddenly gain attention as the asset class offering the most leverage to the rising gold price. Also the gold stocks that have drifted sideways for a year or so will be back in demand.

So if the summer looks like a tricky time for precious metals remember that the best time to buy is when prices are low and before everybody wakes up. It could be too late to wait for a possible stock market correction this autumn which might be the point at which big money floods into precious metals as a hedge against inflation.

In short, the upset in the bond market last week, overturning a major multi-year trend is probably the buy signal for precious metals, and anybody waiting for a better buying opportunity is going to be disappointed.