Your Almost Daily Bit of Wall Street Wit & Wisdom

“The legacy of negative interest rates.  If I pay you to hold my money, I am declaring my money unsound.  The gold price agrees.”
— Chris Carolan, @spiralcal

The fact that investing in gold doesn’t pay interest has been a strong argument against the Midas metal for ages.  But the spreading of calamitous negative yields, as sovereign nations apply beggar-thy-neighbor policies to push on a string and debase their currencies  in hopes of spurring slowing economies, sparked gold to reach 6-year highs earlier in the week.

We shall see if there are any winners in the race to the bottom.  Gold is affirming its historic role as a store of value.

Best regards,

Steve

Leave a Reply

Your email address will not be published. Required fields are marked *