Shelter from the storm...............from RIco

Squaring the circle of falling bond yields and rising gold.

When 'real' interest rates are stuck at zero, and when 'risk-free' cash pays a guaranteed loss, gold (and silver) are monetized.

It is (was) never inflation alone that drives people to buy or sell a lump of rare, indestructible metal. It is the rate of return offered by cash and bonds (which are better stores of wealth - all things being equal - over and above inflation).

Today's Fed non-event/decision (and beyond) means that:
- Holding cash-on-deposit guarantees a loss of real value.
- The opportunity cost of holding gold (or silver)...the interest you'd otherwise receive on cash...is absent.

Take shelter from the coming storm.