Negative Real Interest Rates May Cause Gold Price to Rise, Reports Gold Price

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The Federal Reserve’s perpetuation of quantitative easing and low nominal interest rates may cause the gold price to rise in the future, reports American gold dealer, Gold Price.

Gold Price - GoldPrice.net

Gold Price - GoldPrice.net

By perpetuating negative interest rates, the Fed is all but guaranteeing that gold’s current bull market will continue for some years to come.

The real interest rate – the Fed-set rate adjusted to account for inflation – dipped below zero in 2012, and it is likely that we will see such low rates until 2015, reports American gold dealer, Gold Price.

Arthur McGuire, Vice President of Gold Price, says, “The Fed announced at the end of January that it would continue setting interest rates as close to zero as possible for the foreseeable future, which, even if quantitative easing doesn’t create higher inflation, will maintain negative real interest rates for years to come. Gold has historically responded positively to real interest rates below 2%, and rates are not expected to breach this percentage level anytime soon.”

McGuire adds, “No matter your opinion on the Fed’s treatment of the U.S. economy right now, anyone who is into gold must view the policies with a positive outlook. Gold price spikes historically correlate with periods of low and negative real interest rates, and there is no chance of seeing the real interest rate rising higher in the near future. Low real interest rates have played a role in gold’s rise since the economic crisis of 2008, boosting it in its 550% rise over the last 12 years. Gold is an excellent safe-haven asset to have in order to protect wealth during times of economic uncertainty. By perpetuating negative interest rates, the Fed is all but guaranteeing that gold’s current bull market will continue for some years to come.”

Gold Price (GoldPrice.net) has been a leading precious metals advisor since 1992 with headquarters in New York, California, Texas, Utah, New Mexico and Puerto Rico. A direct gold and silver dealer, Gold Price specializes in purchasing, selling and trading physical gold and silver such as modern bullion bars and coins and certified rare coins. Investors can visit http://www.GoldPrice.net or call 1-800-767-1423 to receive a free award-winning gold starter’s kit.

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Arthur McGuire
Gold Price
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