Bond collapse is coming

Long maturity bond yields are breaking out on the upside. Steepening global yield curves signal an imminent crisis in all fiat currencies and financial assets, driving gold higher.

Long maturity bond yields are breaking out on the upside. Steepening global yield curves signal an imminent crisis in all fiat currencies and financial assets, driving gold higher.

We know that rising gold prices reflect falling currency values. Having consolidated previous rises for the last four months, gold appears ready to continue its upward trend. At the same time, long maturity bond yields in major credit markets are also signalling further increases. It would appear that these events are linked, and if so, a credit crisis from higher bond yields will undermine all credit values and will be reflected in far higher gold prices.

This article looks at how this credit crisis is likely to evolve.