Fed Keeps Interest Rates Low, Gold Price to Respond Favorably, Reports Gold Price

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The Federal Reserve reports that it will continue the near zero short-term interest rates that have been a boon to the gold price during the yellow metal’s current bull market, reports Gold Price.

Gold Price - GoldPrice.net

Gold Price - GoldPrice.net

The Federal Reserve said Wednesday that it would extend its policies of super-low interest rates and regular bond buying in order to stimulate a U.S. economy that shrank at a 0.1% annual rate in the last quarter of 2012. This should encourage gold investors, as these interest rates have played a major role in the unprecedented gold prices we have seen over the last decade. The value of gold has increased over 550% in the last 12 years, largely due to the loose monetary policies enacted by the Fed that have kept interest rates at record lows and driven up inflation, reports Gold Price.

Arthur McGuire, Vice President of Gold Price, says, “Gold historically experiences bull markets when the economy sees low, real interest rates, which are nominal interest rates adjusted to reflect the effects of inflation. This is what the Fed has been doing during the current bull market, and to hear that the practice will continue only bodes well for gold owners, especially those who own physical gold, such as gold coins and bars. The policies of the Federal Reserve will only escalate inflation, and the gold price almost always rises in response to a devaluing U.S. dollar. Here at Gold Price, we advise that household investors who want to use gold to profit and protect wealth invest in physical gold as a financial anchor during the rough economic times ahead.”]

Gold Price (GoldPrice.net) is a leading precious metals advisor since 1992 with headquarters in New York, California, Texas, Utah, New Mexico and Puerto Rico. Gold Price is also a direct gold and silver dealer, specializing in purchasing, selling and trading physical gold and silver such as modern bullion bars/coins and certified rare coins. They
offer investors a free award-winning gold starter’s kit by visiting http://www.GoldPrice.net or calling 1-800-767-1423.

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Arthur McGuire
Gold Price
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