Gold Investment— All Things Considered
Spotlight on Metals, with Rick Rule (YouTube link ) At an Hedgeye interview, Jurrien Timmer —Director of Global Macro at Fidelity Investments—stated that: Gold has become a bond proxy . We've all seen the chart of the negative yielding debt overlaid against the price of gold. They're perfectly correlated. Gold is a play on real rates , probably more than anything else. If you look at the TIPs yield it’s a very strong inverse correlation over the last 10 years or so. I'm convinced that over the next 10 years as this demographic tsunami sweeps around the most of the world I think yields will stay low . When you combine demographics with debt, that’s the two headed monster. We're at $15 trillion in negative yielding debt. Warren Buffett always liked to dis gold because it doesn’t have a yield. In a negative yielding world, a zero yield is a high yielding asset all of a sudden. So yes, I like gold from that perspective. 10 Influencers As a matter of fac...