The world is currently looking at around $14 trillion dollars in negative yielding government bonds. I don’t think this will change and will probably get worse as countries go into massive debt due to their self-imposed Wuflu depressions.
I wanted to point out that one of the main drivers of the gold price is negative real interest rates. What are negative real interest rates?
A real interest rate is an interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower and the real yield to the lender or to an investor. The real interest rate reflects the rate of time-preference for current goods over future goods. The real interest rate of an investment is calculated as the difference between the nominal interest rate and the inflation rate:
Real Interest Rate = Nominal Interest Rate – Inflation (Expected or Actual)
There appears to be a negative correlation between real interest rates and gold prices.
When real interest rates are negative we typically see higher gold prices.