| Amid the global unrest that kicked off 2016 were the negative interest rate policies in Japan and Europe. The interest rate going negative may stand for swelling balance sheets and possible currency wars in the future. With negative rates, government bonds pay no interest but rather charge interest.
Under these circumstances, investors seem to prefer putting their money in gold rather than government securities. The World Gold Council has remained optimistic on gold due to NIRPs (negative interest rate policies) of major economies. It stated, “We believe that, over the long run, NIRP may result in structurally higher demand for gold from central banks and investors alike.”..............................................Full Article: Source
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