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Interest Rates & Pm Poll

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jasper62's Avatar
United States
2189 Posts
 Posted 07/15/2015  9:44 pm Show Profile   Bookmark this topic Add jasper62 to your friends list Get a Link to this Message Number of Subscribers
Poll Question
If the feds were to raise interest rates in the next 6 to 18 months would that have any effect on the PM markets? I really don't have a clue but would like to hear some other opinions.

Poll Choices
 increase a lot
 increase a little
 Stay the same with little movement no common link what so ever
 decrease a little
 decrease a lot

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BuckeyeCoinGuy's Avatar
United States
711 Posts
 Posted 07/15/2015  9:53 pm  Show Profile   Bookmark this reply Add BuckeyeCoinGuy to your friends list Get a Link to this Reply
Interest rates are the natural offset for gold and silver. As interest rates go up, prices of the precious metals go down.

Theoretically gold and silver should be at all time highs in a zero interest rate environment with any inflation, let alone high inflation that we are actually having but not reporting properly.
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Northerncoins's Avatar
Canada
2019 Posts
 Posted 07/15/2015  10:23 pm  Show Profile   Bookmark this reply Add Northerncoins to your friends list Get a Link to this Reply
Where is the " I have no clue" option? I cant pick any of those you have because, I have no clue lol.
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EconBrony's Avatar
United States
336 Posts
 Posted 07/15/2015  11:56 pm  Show Profile   Bookmark this reply Add EconBrony to your friends list Get a Link to this Reply
If we are leaving all other factors in the market out an increase in the interest rate should boost the value of the dollar in theory thus lowering the price of precious metals. If the raise in interest rates is expected by investors the raise in interest rates will have little effect on the precious metals prices.
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fistfulladirt's Avatar
United States
4333 Posts
 Posted 07/16/2015  05:56 am  Show Profile   Bookmark this reply Add fistfulladirt to your friends list Get a Link to this Reply

Quote:
Interest rates are the natural offset for gold and silver. As interest rates go up, prices of the precious metals go down.
Not so back in 1980, interest rates at 18% and sky-high silver close to $50. Know what was different then?
When I listen to LED ZEPPELIN...so do my neighbors...
Roll hunting since '77
Dirt fishing since '72
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EconBrony's Avatar
United States
336 Posts
 Posted 07/16/2015  2:19 pm  Show Profile   Bookmark this reply Add EconBrony to your friends list Get a Link to this Reply
High inflation in the early eighties, people clung to their PM metals. Those were some scary times economically. The high interests rates were the only way to correct the inflation. If paul volcker wasn't the fed chairman at the time things could have gotten way worse (scary thought).
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