Commodities | Monetary Policy & Inflation | Rates | US
Earlier this week, India announced it would issue another series of gold-linked bonds. These still represent just a tiny portion of the government’s funding needs, but the move is symbolically important – not only may such bonds eventually play a more meaningful role fulfilling India’s government financing needs, but they may do so for other countries, too.
All else unchanged, the issuance of gold-backed securities of any kind, be they bonds, certificates, ETFs, or any other structure, should be positive overall for gold investment demand and, therefore, for the price of gold.
This article is only available to Macro Hive subscribers. Sign-up to receive world-class macro analysis with a daily curated newsletter, podcast, original content from award-winning researchers, cross market strategy, equity insights, trade ideas, crypto flow frameworks, academic paper summaries, explanation and analysis of market-moving events, community investor chat room, and more.