The key factors driving gold

Skyrocketing debt and low interest rates are driving gold.

Gold’s best friends remain the world’s debt-addicted central bankers. Like a bunch of stimulant-addicted athletes looking for their next high , central bankers have become enormously dependent on stimulus.

What started out as a post–global financial crisis (GFC) means of avoiding international economic catastrophe has now morphed into a dangerous addiction – and the means of keeping the day-today economic wheels turning. Only now are central banks making noises about weaning themselves off stimulus.

Keeping rates low for several quarters is very different from keeping them there for years, which, in turn, has punished savers and distorted market prices, encouraging enormous and destabilising financial speculation.

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