Equipment companies like Caterpillar are well off their highs because the perception persists there's a worldwide economic slowdown and that the mining sector, which includes precious metals, is dead in the water. Yet, the Federal Reserve Bank trotted out its latest dog-and-pony show to the media spotlight as recently as Tuesday to vanquish this sense of hopelessness and clue investors in. Eric Rosengren, the president of the Federal Reserve Bank of Boston, showed up on both CNBC and the Wall Street Journal to turn up the noise about what the Fed needs to do to jump-start the comatose economy.
The chart also shows the share prices of these potent companies are just beginning to move higher. Even the darling of the silver industry, Silver Wheaton ( SLW) as the next chart illustrates, is just beginning to rise, along with the most popular ETFs that represent the price of gold and silver. SLW data by YCharts
As history has taught us over and over again, when the people with the purse strings (think FOMC) crank up their money-making, monetary-fertilization machines, the price of all sorts of metals goes higher and the equipment makers who help the metals producers also get a nice boost skyward. As Boston Fed President Rosengren has boldly suggested, this time it might even be a bigger, better, more "aggressive" program of monetary infusions and financial stimuli. By the way, in the past 10 years, whenever the price of gold and silver have been fairly flat for around a year, it's been followed by an impressive rally in both precious metals. My gold teeth are vibrating with anticipation that we're getting close to another one of those buoyant reactions. Place your bets soon. At the time of publication the author was long ABX, GDX, NEM and SLW. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. Most large cap stocks were once small and mid-cap stocks. Bryan Ashenberg is here to help you find the cream of the crop amongst the market chaos.