2. At the zero interest-rate boundary, bonds are no longer capable of providing a stability hedge for equity portfolios; investors may look to gold to fill that vacuum.
3. A deepening shortage of physical gold means that even modest capital inflows into precious metals should drive an outsized price response.
War on Savings and Capital
Bonds Can No Longer Serve as an Effective Hedge for Equity Portfolios
There Is a Deepening Shortage of Physical Gold
Senior Portfolio Manager
© Tocqueville Asset Management L.P.
April 12, 2016