Dispelling the Rising Rates/Bad for Gold Myth

There's a common misconception that rising US interest rates are bad for gold - when history typically tells us that the opposite is in fact the case. The best example was the 1970s, when nominal interest rates more than doubled to more than 20% - yet over the same period gold prices rose 24 times – from $35 to over $850 per ounce, as evidenced in the accompanying chart. At the end of the day it's all about negative real interest rates, not rates per se.

2 topics

Gavin Wendt
Founding Director

Gavin has been a senior resources analyst following the mining and energy sectors for the past 25 years, working with Intersuisse and Fat Prophets. He is also the Executive Director, Mining & Metals with Independent Investment Research (IIR).

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.