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.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: orkrious who wrote (2141)3/15/2004 9:01:17 PM
From: yard_man  Read Replies (2) of 116555
 
>>By then the bond market will wake up to the fact that monetary inflation is global and begin to demand higher compensation in the form of higher interest rates. With monetary reflation running globally, we should also begin to see the price of gold rise against other currencies<<

I think it is a mistaken thesis -- i.e. the gold bull gets started in earnest when rates rise.

It is low rates, loose money which has set the bull in motion in the first place -- sustained higher rates would serve to move money out of gold.

But suppose we get this bond debacle folks have been talking about since the dollar first started dropping -- what then?? You know what -- economic collapse -- then where would rates be headed ... again?

Also higher rates here vs elsewhere would tend to be supportive of the USD which also ==> lower gold price.

One more observation -- if you'll permit me <g>

Practically speaking -- when the fit hits the shan sometime this decade -- this list of his is upside down:

Silver & Gold

Natural Gas & Oil

Water

Food

First, we are gonna need water and food. If we have enough of those, then we are going to need energy to keep warm and to be mobile. Then, and only then, are we going to need any financial assets -- assuming we have functioning markets. <g>
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News