In this Sprott’s Thoughts article, republished by ETF.com, I explain why gold remains important in a world of negative real yields, weak institutions, and financial repression.
I argue that Indians buy gold not merely because of tradition, weddings, or culture, but because many conventional investments fail to preserve wealth. When stocks, bonds, real estate, and currencies offer poor or negative real returns, gold becomes a rational way to move savings out of harm’s way.
The same logic is increasingly relevant to the West. Gold may be a barbarous relic, but these are barbarous times.