Gold has a better yield than $12 trillion in assets (and other reasons to buy it)
“If the choice is between gold or a bond that yields 5%, that’s one thing but the balance changes when it’s gold versus something that yields nothing. Add on the chance of more QE, a currency war or a real war and gold looks better and better. It’s not going to be a straight line but we’re back in an easing cycle. The last easing cycle ended with gold at $1900. If central bank easing unfolds as expected, we will get back there. If there’s a recession or war, it will go even higher.”
USAGOLD note: We alluded to this odd but beneficial set-up for gold in yesterday’s DMR – a hedge against negative yield (especially when including inflation!) and upside potential. In many countries gold is the better safe-haven alternative.
Image courtesy of VisualCapitalist/Jeff Desjardins
Repost from 6-21-2019