You are here

Arkadiusz Sieron: Even U.S. already has had negative rates this year

Section: Daily Dispatches

Arkadiusz Sieron: Gold in the Negative Real Interest Rates Environment

By Arkadiusz Sieron
FX Empire
via Yahoo Finance
Tuesday, October 8, 2019

Many people believe that negative interest rates are the ailment of Europe and Japan and that they will never materialize in the United States. But this is not true. They are already present in America.

Can't believe it? Please take a look at the chart below.

... Dispatch continues below ...



ADVERTISEMENT

Storage and Withdrawal of Gold with Bullion Star in Singapore

Bullion Star is a Singapore-registered company with a one-stop bullion shop, showroom, and vault at 45 New Bridge Road in Singapore.

Bullion Star's solution for storing bullion in Singapore is called My Vault Storage. With My Vault Storage you can store bullion in Bullion Star's bullion vault, which is integrated with Bullion Star's shop and showroom, making it a convenient one-stop shop for precious metals in Singapore.

Customers can buy, store, sell, or request physical withdrawal of their bullion through My Vault Storage® online around the clock. Storage rates are competitive.

For more information, please visit Bullion Star here:

https://www.bullionstar.com/



As one can see, the yield on the U.S. 10-year inflation-indexed Treasury dove below zero at the turn of August and September. Hence, though nominal interest rates are still positive in America, real interest rates turned negative for a while recently. By the way, the chart also shows that real bond yields were gradually declining in 2019 until September, boosting the gold prices.

But why is the fall of real interest rates into negative territory so important? Well, more generally, everything that relates to the real interest rates should be of great interest to precious metals investors. This is because of the vy strong negative correlation between real interest rates and gold. It means that gold prices tend to move in the opposite direction of real interest rates. ...

... For the remainder of the analysis:

https://finance.yahoo.com/news/gold-negative-real-interest-rates-0642482...

* * *

Join GATA here:

New Orleans Investment Conference
Hilton New Orleans Riverside Hotel
Friday-Monday, November 1-4, 2019

https://neworleansconference.com/noic-promo/powellgata/

* * *

Help keep GATA going:

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

http://www.gata.org

To contribute to GATA, please visit:

http://www.gata.org/node/16