Is Gold About To Have Its Day?

10.30.23 - Is Gold About To Have Its Day?

Gold last traded at $1,996 an ounce. Silver at $23.32 an ounce.

Gold's About To Have Its Day: Jim Grant Warns No One's Prepared For "Higher Yields For Much, Much, Much Longer" -Zero Hedge

The world is experiencing a historic surge in interest rates. Jim Grant, editor of Grant's Interest Rate Observer, believes the turmoil could be the beginning of a multi-decade bear market in bonds.

In this in-depth interview, he explains what the risks are - and where opportunities arise.

The spike was unexpected: In the US, the yield on 10-year treasuries is rising rapidly toward 5%, the highest level since 2007. From Europe to Japan to Australia, long-term interest rates are also trending upward almost everywhere in the world. There is much speculation about the causes. What is clear, however, is that this shock will not be without consequences.

"It raises the interesting possibility that we are embarked on a new bond bear market", says Jim Grant, editor of the iconic investment bulletin Grant's Interest Rate Observer. "Bonds are unusual in the world of financial assets as their prices historically tend to trend in generation-length intervals; something we don't see so much in stocks or commodities", he adds.

In this in-depth interview with The Market NZZ, which has been lightly edited for length and clarity, the seasoned expert on financial history explains what persistently higher interest rates could mean for investors, what risks are associated with this new environment and where long-term opportunities arise.

"I think gold ought not to trade as an inflation hedge, but as an investment in monetary disorder of which we surely have enough in the world": Jim Grant.