What Does The Rate Hike Mean For Gold & Silver?

So The Fed Finally Did It…

Bullion.Directory precious metals guest post 21 December, 2015
By Nick Adamo
President at Bullion Shark LLC

Finally the federal reserve has raised interest rates by .25%. Wall Street and investors alike have been for months bashing gold and silver claiming that any rise in interest rates would kill the precious metals.

Wall Street claimed that investors would flee the metal in search of interest bearing assets. However, the price action in the precious metals has been the opposite of what investors were expecting.

Since the days of the Federal Reserve’s interest rate hike announcement, Gold and Silver have consistently risen. In fact, Gold and Silver have actually performed better in times of higher interest rates.

So it could be possible to see Gold and Silver continue to rally in a higher interest rate environment.

Furthermore, the recent economic data has been bleak. Manufacturing across the country has shrunk, and key economic indicators have been pointing to a slow down. If the economy goes back into recession the federal reserve could just as easy launch QE4.

All which should be bullish for gold and silver.

*These are solely the views of Bullion Shark, LLC and are not to be considered investment advice. Please consult your own investment adviser before making any investment decisions. Precious metal investing involves substantial risks.

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