Message: The Big Beneficiary of Negative Rates: Gold
Your Vote:
Did you know?
You can earn activity points by filling your profile with information about yourself (what city you live in, your favorite team, blogs etc.)
February 11, 2016, By Dow Jones Business News
.
Federal Reserve Chairwoman Janet Yellen said this week the U.S. central bank is studying the feasibility of pushing short-term interest rates into negative territory if needed.
Gold typically struggles to compete with any yield-bearing investments when interest rates rise, but that disadvantage matters less when borrowing costs are negative, opening the path for more investors to hold the metal.
John Paulson, who became a billionaire during the financial crisis by betting against the housing market, allocated roughly $3 billion of his assets under management and as much as $250 million of his own money to gold, The Wall Street Journal previously reported.
The dollar may still have further to fall, according to data from the Peterson Institute for International Economics, which judges currencies based on countries' current-account balance and says the greenback remains one of the world's most overvalued currencies.
Read more: http://www.nasdaq.com/article/the-big-beneficiary-of-negative-rates-gold-20160211-01400#ixzz3zus9xdgc
2 Recommendations
Loading...
Loading...
New Message
Please
login
to post a reply