SILVER 0.30% $15.25 silver futures

Legume,I have read your post for a second time and have...

  1. 848 Posts.
    Legume,

    I have read your post for a second time and have understood it better, I jumped the gun first time around. Yeah the price of gold does seem to lead interest rates. But yeah when interest rates get high enough they start to effect silver/gold eventually. In the early 80's fed rates were nearly 20 %. Staggering to think considering they are around zero now. Will they ever get this high again? Hard to see it happen although anything is possible, who knows what the manipulators have planned. I see your point Legume that if interest rates were to go spectacularly high then expect the same for gold prior.

    Champ2003,

    I see your point as well, interest rates need to do something spectacular before they really hurt silver/gold.

    I have included charts of fed rates, gold price and silver price below. The links are given just in case the charts go missing again.

    What I am trying to get across is that the silver boom in the early 1980's was shot down by freakishly high interest rates. This is what a lot of experts that were around at the time say. I wouldn't put it past the manipulators that they already have a plan to bust gold down the track. Interest rate rises after some sort of inflation might occur eventually taking down gold. Perhaps there will be a hyper-inflation whereby gold could peak at $ 5000 an ounce only to be dropped by cunning interest rate hikes. In saying that, I to find it a difficult scenario to fathom as it would probably lead to rioting in the streets of the US. Nothing would surprise me though. Yeah let's see what happens. If we got a hyper-inflation scenario then that maybe a cause to kill the dollar and bring in some new currency. Maybe this is what they are planning, who knows? In this instance if you were left holding gold/silver and US dollar bye bye where would that leave you? They might shaft you with the new currency, especially if they peg it against gold at a relatively cheap price. I mean gold rallied after it was de-pegged from the dollar by Nixon in the 70's. My head is spinnning I have had enough I am sure I have confused everyone here.

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    http://www.sharelynx.com/chartsfixed/FedGoldOil.gif



    http://www.sharelynx.com/chartsfixed/SI1980.gif

 
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