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Thereafter, the low demand environment brought on by low-to-negligible economic growth and high levels of unemployment is expected to take effect and will likely lead to lower sales.
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Unfortunately, in our present low interest rate environment the demand for income producing products is high.
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Accommodative monetary policy in developed economies and an extended low-rate environment will both pump up demand for gold and reduce the opportunity cost of holding it as an investment, reads the note.
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The market for wind power has been buffeted by low electricity demand, low natural gas prices (which make wind power comparatively more expensive) and a tough financing environment.
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The low interest rate environment in the country also helped boost demand for debt and other unconventional securities as investors look for higher returns on their investments.
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With Europe in a more stable position and strong demand for credit risk amid the continuing low interest rate environment, inflows are set to continue, driving spreads tighter again, sources suggest.
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And demand is unlikely to be a problem given the current low-rate environment, though stricter diligence, from lenders, investors and regulators, will be critical to prevent a repeat of the last crash.
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