I would rather buy gold than a government-issued bond with a negative yield. And I’m no cheerleader for bullion as a long-term investment.
You may have seen the news earlier this week out of Germany–their ten-year bonds briefly dipped below the 0% yielding threshold. Switzerland, not wanting to be outdone, now has a negative yield on thirty-year bonds that will mature in the late 2040s.
This is what economic madness in real time looks like.
It is a fact of life that institutions–be they public or private–will engage in transactions or offer you terms that on a deal that will make it nearly impossible to create wealth. Always remember this: The existence of a financial product should never give rise to a presumption that it is an “investment.”