Gold in a world of negative interest rates

(March 2016 - World Gold Council)

We have entered a new and unprecedented phase in monetary policy. Central banks in Europe and Japan have now implemented Negative Interest Rate Policies (NIRP). The long term effects of these policies are unknown, but we see discouraging side effects: unstable asset price inflation, swelling balance sheets and currency wars to name a few. Amid higher market uncertainty, the price of gold is up by 16% year-to-date – in part due to NIRP.1 History shows that, in periods of low rates gold returns are typically more than double their long-term average. 

For the complete story read the full World Gold Council 2015 Gold Demand Report at: http://www.mintstategold.com/articles/WGC_2016_Gold_Market_Update.pdf