AUG 31, 2016
Join Greg Hunter of http://usawatchdog.com as he goes One-on-One with John Rubino, co-author of “The Money Bubble” and founder of DollarCollapse.com.
John Rubino, who was a former Wall Street analyst, says negative interest rates will be good for gold and silver. Rubino explains, “It used to be that if you were going to buy gold and store it in a vault, you would have to pay maybe 1% a year. You wouldn’t generate any cash flow from it. Meanwhile, a portfolio of Treasury bonds might yield you 6% a year. So, there was a big gap in cash flow between financial assets and real assets. That’s gone now in a world of negative interest rates. It actually costs you money to own Japanese or German bonds, whereas gold is still what it always was. It sits there and retains its value while your bond portfolio actually loses value. You pay rather than receive interest. So, this is a phenomenally good environment for precious metals, and that ought to play out over time. In other words, money ought to flow into those sectors, gold and silver, as the next few years progress. They are tiny little sectors compared to financial assets, in general. If just 1% of investable assets flowed into precious metals, it would send them through the roof. There is so much more paper out there than gold and silver.”