We've done pretty well on gold
because rates in the US are down
and the cost of gold
is not just the cost of the cash you spend to buy it
but the interest on that cash
you probably would have earned
and so your gold just sits there
earning nothing
while the yield of everything else makes money
your gold almost lazy
in it’s intransigence to yield
but what if that cash rate when negative?
and with it, your negative excess carry
cause now, you’re paid to own the thing,
compared to what you’d make sitting at Deutsche Bank,
waiting for the Brexit
in a race where everyone runs backwards
the winner just sits still
so imagine that world of negative rates
here, NYC, much closer to home
and now add in 1-3% inflation
and tell me where GLD is then?