03/15/2016 - Negative Interest Rates Are Driving Demand For Gold
The economic uncertainty & negative interest rate policies being implemented in various economies are a boost to gold, & in turn, asset management firm Sprott. For perspective, BNN is joined by Peter Grosskopf, CEO, Sprott .. 5 minutes
Bloomberg reports that Japan’s biggest bullion retailer sees gold demand being driven by deepening negative interest rates in Japan .. “Many customers are wagering that it’s better to turn their savings to gold as a safe asset rather than deposit money at banks that offer low interest rates .. Many customers usually sell gold, but we get the feeling that more customers are buying gold even at prices exceeding 5,000 yen.” .. Bloomberg: “In a bid to stimulate bank lending, the BOJ has joined the European Central Bank in setting rates below zero. While that should also spur investment in higher-yielding assets, it may also have had the unintended consequence of households squirreling away cash — or turning to a traditional store of value such as gold. Sales of safes in Japan are surging, suggesting as much.”
LINK HERE to the article
