by Dr. Steve Sjuggerud
Steve Sjuggerud’s Daily Wealth
Don’t make this complicated… The story is simple:
When both gold and paper pay you zero-percent interest, you should prefer gold over paper.
Today, gold pays you zero-percent interest, and so does paper money. So gold is going up. Pretty simple.
Let me show it to you visually…
As the chart below shows, over the long run, investors would rather hold gold than paper when “real” interest rates are negative. And investors would rather hold paper than gold when real interest rates are positive. (“Real” interest rates are interest rates MINUS inflation.) Take a look: