SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Pastimes : Clown-Free Zone... sorry, no clowns allowed
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: mishedlo who wrote (127239)10/4/2001 11:20:03 AM
From: pater tenebrarum  Read Replies (2) of 436258
 
well, it's not THAT easy. first of all, whether he's done easing is open to debate. if the economy continues to dive, he'll keep easing. don't forget, there's a huge credit bubble in danger of imploding.

and likewise, the gold/interest rate correlation isn't as clear cut. it depends on the circumstances - true, what i said about opportunity costs and contangoes holds at all times. but if rates rise due to inflation concerns, i.e., if the rise in nominal rates doesn't result in a rise in REAL rates, gold will rally along with rising rates. happened in '85-'87 for instance...the bond market initially had a huge rally coinciding with a bottom in gold...then the bond market entered a vicious bear phase due to growing inflation concerns and a weak dollar, and it was in this phase that the gold rally really took off.
also, the blow-off rally in gold in '79-'80 happened concurrently with sharply rising rates - as a result of inflation fears.

what is it you can buy back?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News