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Photographer: Akos Stiller/Bloomberg

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This $8.8 Billion Fund Sees Financial Stress Spurring a Gold Rally

  • Rising U.S. debt load blamed for weaker dollar, helping gold
  • Consumer debt eroding benefits of wage growth, Sprott says

Rising U.S. interest rates, usually bad news for gold, are instead feeding signs of financial stress among debt-laden consumers and helping drive demand for the metal as a haven.

That’s the argument of Sprott Inc., a precious-metals-focused fund manager that oversees $8.8 billion in assets. The following four charts lay out the case for why gold could be poised to rise even as the Federal Reserve tightens monetary policy.