From Fleet Street Letter (Great Britain)-
I’m not going to talk to you much about the allocated or unallocated or how you own gold, because I actually trust the system when it comes to gold. Unlike most people in this room. But I will just talk about the factors that are driving the gold price.
Unsurprisingly, we’ve already talked about the real interest rates, and I’ve already mentioned that there’s a failure to create inflation. So in the short term that’s actually a negative for gold; and it’s holding the price down, the fact that inflation expectations of the future are falling. What’s propping the gold price up legitimately is these bond yields that have come crashing down. So it’s very, very important to understand that a bet on gold at the moment is a bet on the bond market.