Commodity Trade Mantra

Posts Tagged ‘Negative Interest Rate Policy’

Gold and Silver Bulls Need to Climb The Great Wall of Worry

Confidence is slippery, even when you are a metals investor sitting atop the best performing assets of 2016. It doesn’t help when 4 years of a miserable bear market remains fresh in our memories. Any weakness in gold and silver prices & it can feel like they are ready to plunge. World events are unpredictable. In bull markets some of the biggest moves happen suddenly, when people least expect it.

Gold and Silver Take a Breather - Will Investors Grab this Buying Opportunity?

In the near term, gold is threatened by a rate hike & there may well be some liquidations of tactical positions. This is to be expected, especially around the start of summer, based on historical precedent. We are optimistic about gold over the rest of this year as negative interest rate fears & also inflation have reawakened investors’ confidence in gold as a reliable currency & store of value.

Owning Gold and Silver is Power to the People to Weather the Monetary Storm

The US still is one of the few nations on earth where it’s totally legal & easy to buy real physical money – gold and silver. That means Americans at least have the opportunity to weather the coming financial storm pretty well. Citizens of other nations with governments that have made it nearly impossible, or very expensive, to buy gold and silver are going to be in much deeper trouble.

The Escalating War on Cash and What It Means For Precious Metals

While bureaucrats can theoretically win the War on Cash because they have complete control over the issuance of paper money, they cannot win a war on bullion. Physical gold and silver is private and off-the-grid – a nightmare for regulators. The push to eliminate cash will inevitably push people into cash alternatives including physical precious metals.

Where Is Negative Interest Rate Policy Leading Us To?

Negative interest rate policy by the world’s central banks is getting out of control. The Riksbank has joined the European Central Bank, the Swiss National Bank and the Bank of Japan in this negative interest rate madness. They want inflation, but negative rates feed deflationary expectations. This causes consumers to hold onto cash in the expectation that goods will get even cheaper.

Negative Interest Rate Policy Arrives In Europe

Negative interest rates would support banks but destroy the business model for money- market funds, which would face the prospect of paying to invest. But the ECB doesn’t set policy to keep alive certain parts of the financial sector. Policy makers want to show that they haven’t exhausted their options yet.

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