03/06/2016 - Mish Shedlock: “Gold Remains The Best Hedge Against Central Bank Sponsored Financial Repression”
Mish Shedlock references the BlackRock gold ETF challenges & an a WSJ on how negative interest rates are positive for gold prices .. WSJ: “One of the biggest factors behind gold’s rise has been negative rates. The Bank of Japan last month joined a growing number of central banks, including the Swiss National Bank and the European Central Bank, when it introduced negative interest rates in an effort to spur consumer spending. Sweden’s central bank said on Thursday it was moving interest rates further into negative territory, and warned it could cut again. Canadian officials are also weighing cutting borrowing costs below zero. And Federal Reserve Chairwoman Janet Yellen said this week the U.S. central bank is studying the feasibility of pushing short-term interest rates into negative territory if needed. Gold typically struggles to compete with any yield-bearing investments when interest rates rise, but that disadvantage matters less when borrowing costs are negative, opening the path for more investors to hold the metal.” .. Shedlock summarizes: “Gold remains the best hedge against central bank sponsored financial repression.”
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