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Gold’s rebound from three month lows this week demonstrates the increased disdain for sovereign debt that charges lenders a fee instead of the other way around. That, combined with the prospect of further stimulus, which in reality is just the fabrication of more cash and credit from thin air for the exclusive benefit of the world’s financial institutions, is causing a massive downward valuation in purchasing power in all currencies in the future.

The argument against gold by advocates of government debt has always been that “gold offers no yield.” Well, gold has never charged you a monthly fee to own it, which is now the case with sovereign bonds. Increasingly, bond advocates are jumping the fence and recommending precious metals as the preferred safe haven over bonds.

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The average yield of global government bonds has fallen to a record low 0.67 per cent, according to Bank of America Merrill Lynch. That’s almost half of what they yielded in December. There are now over US$14 trillion in negative yielding government bonds, up from $5.6 trillion at the beginning of 2016.