Stock markets at all-time highs, falling real interest rates, major economic risks, controlled stock markets: In an interview with Pro Aurum TV, Dirk Müller also emphasizes the great importance of gold.
“Risks extremely high
In an interview with Pro Aurum TV, the well-known market commentator Dirk Müller comments on the current situation in the economy, stock market and investment sector. He doesn’t believe in a small economic dip, but sees the German economy as being massively threatened. Müller: “The risks for the economy are extremely high. He warns of an economic slump that is taking place simultaneously for the first time worldwide. The stock markets, on the other hand, are strong. He is particularly critical of the influence exerted by US President Trump’s Twitter contributions.
Negative real interest rates for a long time to come
And Müller reminds savers of the declining purchasing power of their money: “Investors will have to say goodbye to rising real interest rates until further notice. One will have asset losses, if one sits on the money values . That is probably the price, which one must pay for security. The negative real interest rate remains finally also with rising interest rates existing, if the inflation attracts accordingly.
Central banks sit on gold
Gold could profit in this environment, after all, the precious metal, unlike savings balances, does not cost any interest. Especially when commercial banks began to demand a “custody money” for normal private customers. “And one thing is also clear, if the world’s major central banks have tons of gold in their basements and the Fed holds 75 percent of its foreign exchange reserves in gold, then gold can somehow not be so stupid after all”. More in the following video.