Rates Remain As Is.

arriba-Oct-26-2023-07-38-01-6071-PM


Rates Remain As Is.

 

Dear Investor.


 

We have an answer: rates remain the same. As expected no change for now, it will take A SUBSTANTIAL change in economic figures. 

 

This is actually very healthy for long-term prices of precious metals.

 

Rates staying higher for a longer period of time add considerably more stress in the economy...Government, corporations, and personal loans will cost much more. Let´s keep in mind that this also affects the mid-size and smaller banks that are suffering from liquidity issues.

 

If inflation remains stubborn, then the possibility of stagflation is obviously higher; precious metals do well in such market environments.

 

The Fed has placed itself in a corner with limited room for mistakes.

 

From a technical perspective, we have seen strong price appreciation which is what we all want, but even more importantly, the price activity has been orderly...this allows for corrections and the continuation of the bull market.


Short-term: Headlines are your buying opportunities.

 

Long-term: Fundamentals are your guide.

 

Much success to all.  


Comentarios

Publicar un comentario

Entradas populares de este blog

A Slippery Slope.

Imagen
A Slippery Slope. Dear investor.   It gets more complicated every minute that goes by...it seems that the missile which hit the hospital originated from Gaza. No matter where it came from this act of terror has no justification.    A U.S. battleship intercepted three missiles that were fired from Jemen; the flight path was headed towards Israel. Events like this could change the conflict or should we say expand to third parties raising global tensions immediately?   If the flow of oil is disrupted, expect further gains in precious metals as investors continue to seek safe havens.    Events unfolding, bring greater possibilities for using oil as a weapon against the West. Such a play will then reflect directly on inflation numbers and maintain pressure on the Fed to hold rates steady.    Israel to start its ground war soon, the potential for additional Black Swan events will multiply exponentially...Iran is looking...searching for that window to enter the field.    In Leban
Leer más

When Rates Start To Fall.

Imagen
When Rates Start To Fall. Dear investor.   While the FOMC meeting is taking place, let´s take a moment to understand the potential for precious metals heading into the new year.   If we look at basic economics, in an environment where interest rates are rising sharply, the textbook answer is for the metals to decline in value.   That being said, over the last year, rate hikes were not rising, they were on fire, straight up with no brakes insight...and gold managed to hold, plus, establish a new record high in such hostile conditions.   Then the logical question is, what are the possibilities as interest rates start to fall?   This requires that you calmly digest and review closely the last twelve months.   Tomorrow, the Fed will most likely stay put, with the inflation numbers remaining stable from the last report. Most expect no rate increase.    As soon as the decision is announced IMG will inform all of you.   Short-term: Headlines are your buying opportunities.
Leer más