The Gold Report: What do you think will happen to interest rates and how will that affect gold?
Tobias Tretter: I don't see interest rates increasing at all right now. The Federal Reserve is giving banks money for 0.25%. The European Central Bank (ECB) has interest rates at 0.75%. That isn't an environment with increasing interest rates. The 10-year U.S. Treasuries are at 1.85%, which is up from 1.4%, but even in 2011 we were above 3%. We are still at the lowest possible levels and I can't imagine how countries, even relatively strong ones like Germany or the United States, will thrive in an environment with increasing interest rates. It would prove too challenging and cause too much pain; therefore, interest rates will be low for a long time.
I do not believe that the end of the gold bull market is here. I agree with former Fed Chairman Alan Greenspan that deficit spending is a scheme for the hidden confiscation of wealth. Gold stands in the way of this insidious progress, he said. It stands as a protector of property rights. As long as the Fed and the ECB are printing money and as long as things like the recent Cyprus bailout continue to happen, there's absolutely no way for gold to go down for very long. Continue reading "Has the Gold Bull Market Hit a Snag?"
