In this Video we look at why Gold prices have risen from $800 an ounce in 2007 to $1,800 an ounce in 2020 as the U.S 10 Year Treasury Bond Interest Rates has declined.
Investors can no longer protect the purchasing power value of their dollars from Inflation through buying U.S Treasury bonds, as interest rates are now pegged close to 0.00% by the Federal Reserve so the U.S Government can borrow at cheap rates to help the U.S Economy coming out of the Covid-19 resession.
Gold has been in strong demand since 2007 when interest rates have been cut. The commodity loses it's value when interest rates go higher.
With President-elect, Joe Biden pushing to pass a $2 Trillion stimulus package in 2021, along with the FED strongly telling the markets rates will remain at 0.00% until at least 2023, investors have little choice to continue to buy Gold as a hedge against inflation.
Gold is already up 28% off the low's of this year and up 244% since 2007 when interest rates where cut to 0.00%.
Investors can no longer protect the purchasing power value of their dollars from Inflation through buying U.S Treasury bonds, as interest rates are now pegged close to 0.00% by the Federal Reserve so the U.S Government can borrow at cheap rates to help the U.S Economy coming out of the Covid-19 resession.
Gold has been in strong demand since 2007 when interest rates have been cut. The commodity loses it's value when interest rates go higher.
With President-elect, Joe Biden pushing to pass a $2 Trillion stimulus package in 2021, along with the FED strongly telling the markets rates will remain at 0.00% until at least 2023, investors have little choice to continue to buy Gold as a hedge against inflation.
Gold is already up 28% off the low's of this year and up 244% since 2007 when interest rates where cut to 0.00%.
Kayan Kalipha