Even with yields falling real interest rates might still be positive
One of the major drivers for the precious metals is negative real interest rates. With yields falling across the board (and continuing to trend lower) you would think this would lead to negative real rates. Unfortunately the argument of deflation is the other side of the equation and with oil, base metals, and many other things crashing – we are in an environment where real rates are still positive.
Craig Hemke joins me to outline his thoughts on the status of real rates and how it is impacting the price of precious metals.