As automobile demand has recovered much faster in the US than in the EU, palladium demand has surged, outstripping supply in 2012 and likely again in 2013.
It made sense to hold gold when real interest rates were negative, but it doesn’t make sense when equities around the world are roaring and rates are rising.
The SPDR Gold Shares ETF (GLD) was up 3% yesterday following Congress and the White House reaching a deal on the debt ceiling.
Investors interested in higher upside can get a similar diversification benefit by investing in silver as they can in gold.
A significant driver of investment demand for gold is real interest rates. Real interest rates are nominal interest rates minus inflation. When investors are unable to get a satisfactory real…
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