Rising Interest Rates and Gold | Reagan gold group
The
gold is always holding its ground, even though the interest rates are rising
and the dollar is going at multi-year highs. Investing in precious metals or gold
is always a great idea for the investor. What happens when the interest rate
rises?
What is the impact of the
rising interest rate on the consumer?
It has been identified that consumers get discouraged when interest rates increase, which is predicted to reduce inflation on the services and goods prices. But, most Americans experience challenges in manifesting regular increased monthly debt via IRAs, auto and mortgage financing, credit cards, stock markets, CD and saving rates, variable rate loans etc.
What is the impact on gold?
· Gold is a proven diversifier.
1.It gives you benefits over treasury bills.
2. Any portfolio can be a successful diversifier with gold.
3. It performs to supplement liquid asset holdings of your portfolio.
4. When economic turmoil exists, gold is considered to be a safe haven.
5. It is free from national boundaries and serves as an international currency.
6. It is independent of government policy as an anonymous asset.
The gold group believes
that gold prevails during economic and geopolitical woes
and is a hedge against raging inflation. Thus, you must invest in gold.
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