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Time To Buy Gold As A Hedge Against "Extreme Financial Deleveraging" Credit Suisse Says : https://www.zerohedge.com/commodities/time-buy-gold-hedge-against-extreme-financial-deleveraging-credit-suisse-says



Excerpts:
But while gold may be undervalued in strictly fundamental terms, there is always a risk that central banks will lose control and markets will crash. Gold fixes this, because as Garthwaite writes, "Gold is a hedge against extreme financial deleveraging" and adds:

The level of government debt, deficit and corporate debt is extreme. We continue to believe that if the TIPS yield gets much above zero, that would start to cause the markets to worry about a debt trap and that in turn could lead to a major risk-off trade. This could then prompt a Fed response driving down real yields (and debasing money).

Of course, none of this matters as long as the BIS strategically lends out paper gold to its member banks who have a net deficit in the thousands of tons, and tactically decides to slam the bid every time there is an even modest breakout to make sure that golden animal spirits never emerge.