Will high interest rates crash gold's price?

Discussion in 'Gold' started by TreasureHunter, Mar 16, 2022.

  1. TreasureHunter

    TreasureHunter Well-Known Member

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    So, gold went above 2,000 $, but now even the Fed admits that they're expecting "uncomfortably high inflation rates" for another 12 months (my prediction: at least several years!).

    Turkey and Europe are experiencing 10+% inflation.

    The Russian invasion of Ukraine is still ongoing and the west has launched sanction that will hurt everyone. Europe will not survive unless it pays through the nose for "alternative energy sources", because they are so tightly connected to the Russian gas and oil.

    Higher interest rates on USD and EUR and other European currencies will likely be pushed forward later this year, all prices will rise. Many products will become scarce.

    What do you think, what will happen to gold's price this year and next year?

    Will higher interest rates push gold's price down?


    I think this is not a guarantee, because if money gets eroded a lot (e.g. interest rates above 10 %), then people will rather turn to a safe haven (like gold) instead of accumulating money at the bank, waiting for returns (through interest), because that money will be worth less in a few months.

    But I think if the interest rates are small enough, then people might feel it's worth keeping their wealth in USD, EUR, CHF, GBP etc.
     
  2. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    Depends on where you live i guess. We cant raise rates in the US so its a non issue for us. We are stuck where we are with rising inflation and no end in sight.
    Gold is just going to do what it always does.

    No one with any sense will be in any devaluing currency or the crappy usd. They are all going down.
     
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  3. TreasureHunter

    TreasureHunter Well-Known Member

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    What would you invest in or, preserve your wealth with? (besides food, medicine and the technicals...)
     
  4. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    I believe precious metals are a parallel or alternate economy to the traditional banking system. They are a means to store your wealth outside of the system. Unless you make PMs your main income source you are stuck within the mainstream revenue streams.

    You are in effect running with the hares and hunting with the hounds. The price of gold becomes irrelevant depending on where you see the economy headed.
     
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  5. TreasureHunter

    TreasureHunter Well-Known Member

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    Perhaps higher interest rate USD and EUR will compete with cryptos. Especially with the ones that can be staked.
     
  6. heartastack

    heartastack Well-Known Member Silver Stacker

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    Jim Rogers reckons there will be a post-war correction.
    I'm still on the fence about him compared with the other clowns that show up in PM bull markets
     
  7. Tokyo

    Tokyo Active Member

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    High rate isn’t going to make easier to mine.
     
  8. betterinvestmentthanshare

    betterinvestmentthanshare Active Member

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    The only reason you’d be worried about anything crashing is if you bought everything at the top.
    There is a calculation on how to play gold.
    How much to hold in % to your wealth
    When to sell and how how much to sell
    When to buy and how much to buy.
    Remember gold is a store of wealth, it still is when the price is going down
     
    Last edited: Mar 23, 2022
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  9. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    Cryptos follow the etf markets almost exactly and are in a downtrend. You can follow the crypto market simply by watching wall street and theres no difference.
    Metals are going up and the weak measly interest rate hikes wont do anything. Its already far too late for that now and the price increases arent going anywhere but up.
     
  10. silverhair

    silverhair Well-Known Member

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    As usual the value of gold is not changing, only the value of dollars we exchange to buy or sell it. I have no educated response on what interest rates will do to the price and have subscribed to this thread instead to see if i can learn a bit more.
     
  11. lucky luke

    lucky luke Well-Known Member Silver Stacker

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    what war might that be? :)
     
  12. sammysilver

    sammysilver Well-Known Member Silver Stacker

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    WW2.5
     
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  13. JohnnyBravo300

    JohnnyBravo300 Well-Known Member

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    General Brandons War on Crisises
     
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  14. projack

    projack Well-Known Member Silver Stacker

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    The US government is the biggest borrower. They can't even afford to pay 5% on the 30 trillion they have borrowed so far.
     
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  15. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    Of course they can.
     
  16. projack

    projack Well-Known Member Silver Stacker

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  17. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Real $ and mmm....shiney! like this.
  18. projack

    projack Well-Known Member Silver Stacker

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    They have no intention to pay back anything like everyone else.
    How much longer they can do that?
     
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  19. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    They have no intention of ever stopping the issuance of debt. They pay back every bond/note issued then issue more.
     
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  20. mmm....shiney!

    mmm....shiney! Administrator Staff Member Silver Stacker

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    That creates demand, but the past decade has been more about balance sheet demand.
     
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