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New Zealand Reserve Bank will likely get on the band wagon when negative interest rates kick in the USA, so if and when they come to Aotearoa, will it rally gold (and silver)?
“…President Trump has expressed support for negative interest rates. Some economists, including former Fed Chief Alan Greenspan, have said negative rates are likely to make their way to the United States.
There has been a clear and observable correlation between the global stock of negative yielding bonds and investment demand for gold. To some extent that correlation has driven gold prices higher over the past year – though we haven’t seen the kind of spike we might see if U.S. rates go below zero.”
Gold is up 26.65% in NZD over the last 1 year!