Negative Bond Yields And An Asset That Is No One Else’s Liability (Gold)

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Luke Gromen on Gold Palisades Radio

Luke is concerned about the United States debt to GDP ratio. Once a certain threshold of debt is reached countries normally enter a period of stagnancy. Today, there is a binary aspect to Fed policies as they are expected to do either too much or not enough.

The U.S. Bond markets today have around seventy trillion in assets and there is a slow move from bonds to other assets including crypto. Investors are looking for anything that protects purchasing power.

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He feels the world is passing peak cheap oil and that prices will shift higher from here. Fracking and shale oil may become more feasible as prices rise. However, the cheap capital that used to be available for that industry is far less today.

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Physical gold is an asset that is no one else’s liability. No one else should have a claim to it. Today, the value of everything is tied in some way to energy. Gold doesn’t carry that risk because the energy has already been expended.

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