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IPFS News Link • Gold and Silver

Ever-Lower U.S. Bond Yields Are Driving Gold's Relentless Rally

• Stephen Spratt, Chikako Mogi and Justina Vasquez

Bullion has gained 22% this year and is within about $70 of an all-time high. And with five-year Treasuries now yielding -1.15% once the effects of inflation are stripped out, a seven-year low, there's little reason to expect a slowdown in precious-metal buying as investors fret about the weakness of the economic recovery, prospects for further outbreaks of Covid-19 and the impact of central bank bond buying.

"Gold is a superior form of purchasing power protection and as real rates dive significantly below zero here, gold is relatively more attractive as a hedge," said Peter Grosskopf, chief executive officer at Sprott Inc., a precious metals specialist with about $8 billion under management.