The Fed’s Interest Rate Dithering – Great News for Gold Investors
MineLife
Who’d want to be an investor in this market right now? Last Thursday we witnessed a media headline titled “Investor Interest in Gold Waning With Fed Rate Increase Looming. Just a day later came the headline that read “Dollar and Stocks Fall, Bonds Advance With Gold After Jobs.” Markets of course have been completely comfortable with the ‘easy-money’ scenario continuing, as it helps maintain the value of already-inflated share and property investments, to the detriment of savers. It’s been described by some as the worst economic recovery since World War II. The biggest concern lies in the fact that financial markets have become so dependent on QE and artificially-suppressed interest rates, that it’s now very difficult for the Fed to reverse these policies without major repercussions.Throw in the negative interest rate experiment being conducted by central banks around the world and it's little wonder investors are turning to gold.
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Gavin has been a senior resources analyst following the mining and energy sectors for the past 25 years, working with Intersuisse and Fat Prophets. He is also the Executive Director, Mining & Metals with Independent Investment Research (IIR).
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Gavin has been a senior resources analyst following the mining and energy sectors for the past 25 years, working with Intersuisse and Fat Prophets. He is also the Executive Director, Mining & Metals with Independent Investment Research (IIR).