JP Morgan: Ultimately gold could wind up replacing sovereign bonds
By GCRU Gold News on Saturday, May 21 2016, 08:52 - Permalink
Marcelli points to the negative interest rates around the world and said, “Gold is looking more and more attractive every single day. As a non-yielding asset, it has a minimal storage cost, so when you compare it to negative-yielding assets, it actually has a positive carry…Gold is a great portfolio hedge in an environment where world government bonds are yielding at historically low levels.”
She continued by stating that ultimately ‘gold could wind up actually replacing sovereign bonds, long considered the safest of safe places for wealth, as the preferred safe haven for investors’.
She also expects central banks to continue buying gold to diversify their foreign exchange reserves.