This time the Federal Reserve Board’s indecision pain could be your financial gain
Recently the Federal Reserve Board met yet again to discuss the idea of finally raising interest rates. The economy is certainly better than it was just a few short years ago, however, there’s quite a few indicators showing the growth may grind to a halt. In effect, the Fed’s hands are tied and its ability to raise interest rates has been completely silenced because Janet Yellen doesn’t want to be the one potentially messing with wrecking the economy.
However, this may not last forever…
The Wall Street Journal reported that gold prices are indeed up, but the rope binding the Fed’s next round of decisions concerning raising interest rates could be loosening up. In fact, Yellen and her gang could be raising rates as soon as December…right in the thick of the holiday shopping season. And this has instantly spiked the price of gold just this morning (October 30th) bringing the price to about $1,148.00 an ounce.
So the question becomes how can you take advantage of the Fed’s indecision regarding interest rates?
Sifting Through the Economic Tea Leaves
Of course, there’s no surefire way to know with 100% certainty how gold prices will move one way or another. However, there are some critical indicators you can easily follow which will give you a good idea of what may happen.
And the first place you should always start is to watch like a hawk the value of the dollar. Typically the dollar and gold have an inverse relationship…when one goes up in value the other goes down. When the strength of the dollar experiences a bull market or a surge in value the price of gold drops and vice versa. So when the Fed decided to punt on raising interest rates it combined with European and Chinese economies gaining strength bodes well for the price of gold. Now, if the Fed decided to raise interest rates this next time it could radically strengthen the value of the dollar and lower gold prices.
You might read this and wonder if gold is a solid investment for your portfolio and of course you also might think we’re a bit biased in our opinions on it. Fair enough, however, there’s another big reason why we recommend looking at gold as an investment and it has less to do with reading tea leaves and more with just plain old fashioned insanity.
Hedging Against Human Frailties
The reason why precious metals like gold are such a tremendous shield against financial collapse is our human nature to essentially mess things up.
Everything from creating an economic bubble from tulips in the 1600’s to a housing bubble giving people loans they couldn’t afford to line the pockets of bankers who didn’t care. And when it comes to the Federal Reserve Bank a small group of humans can help create a world of calamities. Think about how long they kept interest rates at practically nothing to allow banks to borrow dirt cheap money…. Then used the dirt cheap money they borrowed to package up loans the consumer ate up for massively high interest rates. Only to watch foreclosures happen on a grand scale and tank the economy.
In fact, all you need to do is simply watch and listen to what politicians and world leaders do…and if something strikes you as being fairly crazy then gold could be your safe haven. So why not take a few moments and learn how gold could protect you from the Fed and other potential dangers by clicking the link below and downloading our Precious Metals FAQ guide. It’s free and there’s no obligation other than investing a few minutes to educate yourself on the protective powers of precious metals.
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The Definitive Gold Guide:
On January 8, 1835, President Andrew Jackson proclaimed that the last installment of our national debt had been paid, and that the United States was debt free! This was the only time in American history that the U.S. had no debt.