- Created: 31-12-16
Description: .As for Hotelling Theory, the price of oil and, to a lesser extent, copper and other industrials, will be tempered by storage costs to a much greater extent than gold.In addition, the unprecedented reserves the Fed has equipped banks with, despite banks having virtually no credit worthy projects to lend to in a recession-soon-to-be-depression, are still available as collateral to the usual heads-I-win-tails-you-lose crowd. Hence are likely used to engage in riskier bets than people would place with their own money. This is bound to have an effect on the demand for all assets, gold included.
Publish Date: 31-12-16