“Going forward, the more investors focus on governments’ need to ensure that interest rates remain below the rate of inflation, the more the price of gold is likely to rise. This will be particularly true when central bankers begin to reduce interest rates. Should a financial repression require capital controls to coral investors into local currency government bonds, the rise in the gold price will accelerate.”
USAGOLD note: A must-read from Russell Napier – a market analyst widely followed by other market analysts.…… Napier believes gold will glitter in an atmosphere in which central banks keep interest rates below the inflation rate. The rise in inflation, he says, will not be matched by a rise in interest rates. He describes the process as “financial repression” and predicts it will be in place for at a decade.