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Brazil: the light at the end of the tunnel?

daOnlyBGdaOnlyBG Posts: 1,060 ✭✭
in Precious Metals
Does anyone see a potential PM rally if Brazil's problems escalate? Of course, its political problems are pretty minute for now, but if they are an indication of a deeper instability, it's possible that the Brazilian Real decreases in value. That also wouldn't normally mean much for any random country, but Brazil is an economic powerhouse with a lot of capital going into its market. Should that capital leave.. would investors rush to put money in silver/gold?

Just curious, and willing to listen to peoples' takes.
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Comments

  • derrybderryb Posts: 36,825 ✭✭✭✭✭
    My take is that Brazil has no affect on PM prices.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • cohodkcohodk Posts: 19,143 ✭✭✭✭✭
    Brazil benefited from the global carry trade. If that trade continues to unwind due to higher interest rates which coupled with a global slowdown will only push more investors into US dollars.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • DrBusterDrBuster Posts: 5,386 ✭✭✭✭✭
    So long as they don't stop the waxing things will be fine.
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