Many loyal customers of Jack Hunt and followers of this blog may recall our article from April of this year titled War on Cash. That article dealt with the potential for the future abolition of currency, both in the United States and abroad.
Amid a world of negative interest rates and slow growth, investors have stepped up the demand for gold in record breaking fashion. Considering the uncertain global economic environment, investors can’t seem to get enough of gold right now, and there’s little sign that demand is letting up.
Could negative interest rates be on the horizon? As we discussed in a recent article on this site, a documented “war on cash” has already been initiated in several countries worldwide. In Sweden, Switzerland, Denmark and the euro zone, central banks are using negative interest rates policy (NIRP) as a primary weapon in trying to force feed stagnant economies into growth. Here in America, Janet Yellen recently said that if circumstances warrant, negative interest rates are “on the table.” Another Federal Reserve governor was quoted last fall as stating “negative interest rates are inevitable in the U.S.” The same thought process is in play at the Bank of England.