Saturday , 4 January 2025

Gold

U.S. Fixation On Gold Unlikely to End Any Time Soon

While it is true that there have been some hiccups along the way, such as Roosevelt’s confiscation of gold in 1933, it is unlikely that America’s fixation on gold will end any time soon. Below are the facts regarding the history of gold in the USA.

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Gold Price Dependent on Extent of Money Supply NOT Direction of US Dollar Index – Here’s Why (+2K Views)

...When the USD starts to rise many assume that this is negative for paper gold ETFs such as GLD as well as physical gold. I'm sure you have heard it before, if the USD goes up then gold goes down, and vice versa...but, in reality, this "rule of thumb" isn't the case and, in actuality, it would be impossible for the USD and gold to trade inversely with each other. Let me explain.

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What Do Current Low Interest Rates Mean For the Future Price of Gold? (+3K Views)

Investors commonly assume that rising interest rates adversely impact the gold price, and vise versa. They believe that a rising interest rate environment is indicative of a strong economy, which is supposed to drive investors out of gold and into the stock market. They further assume that investors will want to exchange their gold, which has no yield, for stocks and bonds, both of which have yields and generate income but this intuition is unfounded. Let me explain why that is the case ans why, as such, gold investors shouldn't fear rising interest rates.

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Goldbugs Should Pray for Higher Interest Rates – Here’s Why

Interest rates cannot stay low forever so, while the Fed’s low interest rate policy is pushing stock and bond prices higher, it is also infusing potential energy into the gold market. Therefore, it is only a matter of “When?” and not “If?” this trend reverses and gold catapults higher.

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