Money “Madness” Negative Interest Rates Sees Gold Buying Surge

Friday, August 12, 2016
By Paul Martin

By: GoldCore
GoldSeek.com
Friday, 12 August 2016

Gold buying surged to record levels in H1, 2016 due to increasing concerns about the political, economic and monetary outlook. In particular, deepening concerns about the negative interest rate money “madness” of central banks today.

Yesterday we covered this surge in gold buying in western markets as detailed by the World Gold Council and what is driving this increased demand. Monetary policies and their impact on savers, along with political risks, contributed to record H1 gold investment demand, surpassing even that of the 2009 financial crisis.

One of the key causes of the surge in demand in western markets and especially in older wealth economies like Switzerland and Germany and indeed in Japan is the unprecedented monetary experiment of ultra loose monetary policies, QE and more recently negative interest rates.

Contrary to the beliefs of ideologues like Paul Krugman, assorted policy wonks, bankers and central bankers, negative interest rates are not leading to increased consumer and business spending which it was hoped would stimulate economic growth.

Quite the opposite is happening, with consumers and businesses realising that negative interest rates are a result of very significant macroeconomic risk and they are prudently deciding to save more, not less.

Many of them are buy gold and opting to save in gold due to the risks of negative rates, bail-ins of deposits of currency debasement.

The Rest…HERE

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