The following article was written by John Hathaway, CFA, and reflects the views of the author as of the date or dates cited and may change at any time. It has been reprinted with the permission of Tocqueville Asset Management. The information should not be construed as investment advice.
No representation is made concerning the accuracy of cited data, nor is there any guarantee that any projection, forecast or opinion will be realized.
Gold has finally turned the corner. The rally since year end 2015 begins a march to new all- time highs. Why? Investors and savers of all kinds are spooked by negative interest rates and justly fear that radical monetary policies will become even more so. Nearly 25% of world sovereign debt is trading at negative nominal rates, so holders are guaranteed to lose money. In many European countries, savers are being charged to hold cash at their bank. Cash transactions above fairly low thresholds must be accompanied by special documentation. Cash withdrawals from ATMs are limited. Central bankers and policy makers in the US, China and Europe openly discuss how to move to digital currency and how to eliminate high denomination currency notes such as the 500 Euro note and the US $100 bill.
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