I think precious metals prices will rise if...

Coin Finder

.....Janet Yellen is let go by Trump. My reasoning is that interest rates will rise faster becasue when they do banks make more money. I think our President will appoint such a person if he lets Yellen go.

(First, this is not a political statement. We have a President and his name is Donald Trump so please be nice!)

What do you think?

ChrisRx

Here we go...

OPA

It's a proven fact and mentioned on several occasions in this forum, that interest rates have no major bearing on the rise or fall in Gold or Silver. As such, his choice would make little difference.

cohodk

Well, at least Trump could blame the Fed for high rates causing his disastrous results.

VanHalen

With our ultra low/forever long interest rates the major banks (who have the pull) have been shooting rats in a barrel for 9 years now. It has allowed them to repair their tattered balance sheets and, coupled with tossing accounting rules out the window, they have been making as merry as ever = paying out insane salaries/bonuses to their executives and driving equity prices to the moon.

I'd say they've been quite happy with Bernanke and Yellen and have no real desire for significant change unless it puts more money in their pockets via direct transfers from the U.S. Treasury.

TwoSides2aCoin

Metal is for industrial use. Look at palladium and the automotive industry for the causes in spikes... Not FED policy, or numismatics. Seriously, though.... the precious metal commodities usually just sit there bubbling, unlike a bubble. Generally and metallurgically speaking, of course

ricko

A change in Fed leadership will not affect PM's..... Actions taken subsequent to such a change may do so. Cheers, RickO

derryb

@ricko said:
A change in Fed leadership will not affect PM's..... Actions taken subsequent to such a change may do so. Cheers, RickO

anyone notice that so far FED is unable to squash bitcoin price? Gotta be driving them nuts.

metalmeister

More people invest and buy the bullion.

ZJantiques

If you want to make serious money of precious metals, first you need stacks of money or a bank. Otherwise you won't feel the difference.

mvs7

Time passes. History is on my side on this one...

TwoSides2aCoin

It’s no secret. Even bitcoin is dependent on precious metals.

derryb

There will be no US rate hikes. Reduction of the FED's balance sheet will be too much of a shock to the equity markets and the hope of tax reform to save the day will not materialize. The only tool left is to back off from the FED balance sheet reduction. There's also a good case that the FED will have to consider returning to QE. Central banks created $15 trillion of fake credit since 2009 and are still printing at the pace of $120 billion each month.

Precious metals prices will rise when, and only when, it is realized that the central banks did in fact go down the wrong path in 2008. That will only occur when the stock market shouts it out. PMs are heavily dependent in faith in the economy's string pullers. The timing of all time highs in gold around the world proved this.

Watch the bond market (globally $200 trillion, $550 trillion if you include derivatives based on bond yields). It will lead the way and take everything down with it.