by Peter Schiff, Schiff Gold:

The yen was once known as a safe-haven currency for investors to protect themselves when broader markets are shaky or other currencies are dropping, but those days are numbered. A stable government and consistent (and low) interest rates have been some of the driving factors, but it’s the unwinding of that ultra-low interest rate policy that will be the yen’s “safe haven” undoing as gold retains its protective characteristics and rockets upward.

TRUTH LIVES on at https://sgtreport.tv/

Both gold and yen have benefitted from investors looking to park their cash somewhere safe during times of high risk. But ZIRP policy in Japan has gone on for so long, that the economy can’t handle even modest upticks in the price of borrowing without triggering chaos. As seen below, the yen is currently in a freefall against gold as it hemorrhages purchasing power:

Gold’s 6-Month Rise Against the Yen

If this is what happens with 0-0.1% interest rates, imagine what would happen if they ticked up to even a modest 1%, much less the drastically higher rates that would be set by the free market if a central bank wasn’t pulling the levers.

And despite once being known as correlated with gold, since Japan began ticking interest rates up, the divergence between the two alleged “safe havens” has been decisive and dramatic:

#Gold Price in Japanese Yen vs Yen/USDollar Since 1970 (Apr. 23, 2024) – via https://t.co/NjtSzxxNhA pic.twitter.com/7SkCZ6wqM3

—