“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.