On Wednesday, I appeared on Canada’s Business News Network to talk gold with host Andrew Bell. Specifically, Andrew wanted to discuss my recent commentary that outlines the current drivers for gold.
I explained to Andrew that the combination of negative real interest rates and easy monetary policy, i.e. money printing, drive what I call the Fear Trade for gold. There’s also the Love Trade which is driven by rising demand for physical gold in countries such as India and China.
It’s been more than a year since I first outlined the Fear Trade and Love Trade of Gold Demand and these drivers have only grown stronger over that time period. While European bureaucrats battle an army of bad debt, the timeframe we expect to see interest rates remain negative extends further down the road. In addition, recent data from China shows demand for gold in the Year of the Dragon has reached unprecedented levels.
Read My Latest Commentary on Gold: In the Bullring with Gold
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