Hi, How do you think gold will be impacted, should the Fed decide to raise interest rates in 2019? (some say higher interest rates favor the dollar, because gold won't be an attractive asset - but I think higher interest rates also mean weaker dollar, despite higher bank interests, so gold could even rise as a safe haven asset)
Rising interest rate generally hurts the stock market and housing market (less liquidity and less borrowing for spending and growth), hurts the bond (fixed-rate) market, and helps gold indirectly (safe/fear purchasing)... but there are no absolutes. Besides, the interest rate changes are usually done in pretty small increments. It is best not to over-think it.
Disagree, there are absolutes....... price of gold are manipulated by the _______________(Fill in the blank)
2019 gold & dollar can move together or they moved separately one moves the other stand still but gold moves is not due to the interest rates, it moves due to people having no interests in the metal, ie non gold hoarders
I certainly don't want to overthink it, but by following Peter Schiff's logic, the raising of interest rates will be perpetual, once they decide to raise them. If it goes up, it will keep going up - potentially to hyperinflation. Yet, even a 10-25 % inflation is enough for stimulating people to buy into gold >>> thus, gold's price will climb. Let alone, in times when currency loses value, the media keeps pumping negative news about the economy, which will induce a thirst so safe haven assests: gold comes in handy. This is my logic as well. Banks' interest rates are almost negative currently (in some countries even negative). You pay them to keep your money there (which does have some logic: for safety). Still, people aren't buying much gold currently. Odd. So odd.
It’s cetainly odd that more people haven’t flicked to precious metals, especially in light of Wall Street looking shaky. But I’m happy for that to be the case, it just means the prices are low for me to keep stacking aggressively!
HA HA HA, Please sir, can I fill in the blank? I think I know the answer sir, can I, can I? Pretty, pretty please. _JLG.
@TreasureHunter says : "Still, people aren't buying much gold currently. Odd. So odd." Not really, when most people have a ??Phone stuffed in their ear whilst walking down the street. Even now in Melbourne Australia people are crashing into each other because of a lack of concentration & awareness of their surroundings. fING RANT OFF.
^^^ iPhones, GoPro cameras, smartwatches.... and countless accessories for the accessories of the accessories... Which become obsolete in a year. And you'll have to buy the new version again... and again... and again... They have no idea what's going on with the economy. It's too abstract and too distant for them.
True, but for all our investigations and gnashing of teeth does any of it actually matter, and what difference does it make down here at ant level?
^^^ "Ant level" )) We're like ants, indeed! Fiat money is going to go down the Venezuelan-Argentinian-Zimbabwean road. I guess gold has some safe-haven hedge character, but food might indeed be a lot more important.
