Gold: On The Edge Of A Steep Cliff | Seeking Alpha: "Cheap money will create a golden opportunity
On a global basis, interest rates remain at historically low levels. A low interest rate environment generally is a positive for gold and other commodity prices. However, the dollar's strength has dominated the action in raw material prices. Low interest rates are a response to weak economic conditions around the globe. Central banks have artificially lowered rates to stimulate economies. They have also employed other tools, like quantitative easing and purchases of all types of debt, to provide stimulus.
In the future, these moves and artificially low rates will come at a price. Cheap money chasing goods and services is bound to cause inflationary pressures around the globe. Inflation has been gold's best friend throughout history. Add to that exponential rates of population growth, and you have a situation where the world will find more people chasing finite goods with lots of cheap currency. It is a scary prospect."
'via Blog this'
No comments:
Post a Comment