“THE GOLD/CURRENCY SPREADS DISCUSSED IN THIS BLOG HAVE BEEN A MARKET RESPONSE TO THE LOOMING CREDIBILITY GAP OF ALL CENTRAL BANKS IN A FIAT CURRENCY WORLD. Listening to the recent speeches from ECB and FED members there still seems to be a race to be the greatest liquidity provider in a QE-dominated world. The move to buy the precious metals in the face of rising short-term interest rates is a response to concerns that the CENTRAL BANKS HAVE NO ANSWERS TO THE TRAP OF FORWARD GUIDANCE AND ITS MANTRA OF LOWER FOR LONGER.”

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