by Chris Powell, GATA:
Dear Friend of GATA and Gold:
Examining the astounding and continuing downward trend of interest rates that has brought some rates into negative territory, the TF Metals Report’s Turd Ferguson postulates today that gold and silver prices won’t be going any lower, regardless of the charting done by technical analysts. Ferguson’s commentary is headlined “ZIRP Morphs to NIRP” and it’s posted at the TF Metals Report here:
Of course Ferguson is right about what ordinarily has been the inverse relationship of gold prices and real interest rates. That relationship was described by the 1988 academic study by Harvard University economics professor Lawrence Summers and University of Michigan economics professor Robert Barsky, “Gibson’s Paradox and the Gold Standard”:
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