Nov. 14, 2011 - I was in New York to participate on a panel at Terrapinâs Commodities Week 2011 Conference. This is one of the most important gatherings of commodities investors and traders in the world.
I had the opportunity to stop by the InvestmentNews offices to speak with Mark Bruno regarding higher gold prices. One of several key factors influencing goldâs recent price action is negative real interest rates.
Whenever a country has negative real rates, meaning the inflationary rate (CPI) is greater than the current interest rate, gold tends to rise in that countryâs currency. Right now, investors are losing money on Treasury bills and money market accounts because interest rates are near zero and inflation sits just under 4 percent.
I also discuss what I think could derail higher bullion prices and discuss how emerging economies are enjoying a rising GDP per capita and how this could influence gold.
Also, read about how gold is currently in season.
