Portfolio analysis suggests that gold allocations in a low rate environment should be more than twice their long term average.

“We believe that, over the long run, NIRP may result in structurally higher demand for gold from central banks and investors alike. As a result, we expect that demand for gold as a portfolio asset will structurally increase.

“The link between gold and interest rates happens through investment demand. Low interest rates reduce the opportunity cost of holding gold, and negative rates magnify this.