Source: Tom Beck for The Gold Report 04/09/2017
Tom Beck, senior editor of Portfolio Wealth Group, examines how low real interest rates boost gold.
In a fiat monetary system, gold is apparently not money anymore for 99.15% of the population. Although demand is outstripping supply by $54 billion annually, only 0.85% of the population owns any gold or silver!
The ownership of gold and silver stocks is even more miniscule. To 99 out of every 100 citizens of our planet in 2017, a government note makes more sense than a gold coin, and even a digital currency, such as Bitcoin or this potentially explosive new one, is apparently more appealing.
But some investors see the eternal importance of gold, like Jeff Gundlach, who manages more than $100 billion through his investment firm, DoubleLine Capital.
“I expect a rally on the 10-year,” Gundlach said. A “rally” means higher bond prices, and therefore lower interest rates.
Gundlach predicts they will fall “to below 2.25%, at a minimum. . .maybe a bit lower than 2%.”
Interest rates are already the lowest they’ve been since our ancestors watched gladiators fight for gold, and this investor optimism is what tells me that Gundlach sees what I see.
Real interest rates (you know, after you deduct inflation) are negative—not just in the U.S., but everywhere else in the developed world as well.
The reason to own gold is because it’s a safe haven and it’s a hedge against currency devaluation.
I personally own 8% high-yield special stocks for my retirement account and Wealth Stocks for long-term compounding, but for massive mind-boggling gains, nothing comes close to catching a gold stock’s bull market and avoiding a bear market.
Only a well-funded, …read more