RE:RE:RE:RE:RE:A Rising Tide Will Lift All Boats ! Cheers Justmoney.
Interesting take. Do you really think that would suck for gold? I'm not so sure....
Raising rates in isolation = bad for gold. Agreed. But if they're doing that to try to curb inflation, then the implication is that real rates haven't increased at all. And so that's not bad for gold.
Now factor in the gargantuan levels of debt the US government need to service. To what extent is the Fed really able to jack up rates sufficiently to head that inflation off? I seem to recall that taking rates up to, say, 3% would cost the government more to service than funding the entire US Navy. Something like that anyway.
Now also factor in that permanently high (though not out of control) inflation is the only way the government / Fed (they increasingly act ias one joined up entity) can get that debt down and back under control. They won't admit it, but there's a strong argument to suggest that they actively want permanent (moderately) high inflation.
Interest rates will remain negative in real terms, as a deliberate policy in order to Inflate those debts away. And because they can't afford to act any differently.
And that's a positively good scenario for gold.
Also keep in mind, that if we're all wrong about inflation and the opposite happens - deflation has also been historically good for gold. For goldbugs it's kind of like "heads you win, tales you can't lose".
On your other point - a big market correction will hit everything - I think you're right there. But commodities and precious metals will bounce back quickest and strongest I think.
However, I don't fancy my chances of market timing. Most of the best and highest paid active fund managers would also admit that they're rubbish at timing the market. So my strategy is to simply stay long and strong and ride it out.
The outlook for gold and silver is strong over the medium term. Stronger still for mining stocks. And strongest of all for explorers.
Patience is a strategy. As a wise person on this bard once said....!
;-)