“Credit Suisse said a global glut of debt suggests dovish future monetary policy by central bankers. Central banks collectively hold a greater percentage of sovereign debt than ever before, and sensitivity towards disrupting markets means that they likely will be cautious in pursuing policies that could disrupt the current low rate environment supporting the economic recovery.”
MK note: The less-than-well-informed translate rising rates, and rising rates alone, as an indication of tight monetary policy, but the mere act of raising interest rates is not enough to accomplish that goal. Tight monetary policy translates to forcing interest rates above the inflation rate (or even the natural market rate on Treasuries), and neither Yellen nor Trump want that.
So it is that the professional investors are reading negative returns and the potential for inflation in our collective futures. They are buying gold and silver in response as reflected in rising ETF holdings. Judging from volumes at USAGOLD over the past few days, private individual investors, like their professional counterparts, are finally catching on. It will not be long until reports begin to surface that the average investor has joined the new gold buyers club.