It appears that anyone with understanding about economics is astounded at the actions of Japanese PM Kuroda who after some sumptuous dinners, plenty of champagne plus persuasion by clueless central bankers meeting at Davos, Switzerland has pitched the stagnating Japanese economy to the unknown with interest rates to be set below zero. Yes, negative rates meaning it costs you money to hold cash, effectively a tax on your savings. There is a mounting war on cash with bankers wanting it banned so that all transactions are traceable upon which they can charge fees and of course, taxable. Just why gold has not soared markedly as result is hard to understand; after all you are getting charged to hold cash now but physical gold has no holding charge if you store it somewhere yourself. There is a war on gold. Unleashed by the US bullion banks in the quiet of night when markets are at their slowest are hundreds if not thousands of uncovered naked shorts (derivative contracts) to drive the price of gold down. These occurrences happen especially when gold starts to get a lift. Irrespective, the demand for physical gold and silver is insatiable.  Negative interest rates will make even the dullest amongst us realise that currencies are being degraded and they need to look elsewhere for something that retains wealth.

Source: The Question Is Not A Difficult One To Answer | Alhambra Investment Partners – We Are Different.