The more real interest rates fall, the greater incentive for investors to own gold.
Real interest rates have certainly fallen for long-term borrowers in the last few years.
Conversely, the most populous nations making up the E-7 have mostly positive real interest rates.
FORBES: Central Bank Appetite And The Monetary Case For $10,000 Gold
With high real interest rates and a stalled economy, that debt dynamic is a dangerous one.
Deflation robs a central bank of its ability to stimulate spending using negative real interest rates.
Major factors influencing the price of gold include Asian demand and real interest rates.
FORBES: Fundamentals In Place For Gold To Finish 2011 At $1750
The answer to this enduring puzzle may lie in the level of real interest rates.
ECONOMIST: A very unusual sign of confidence in economic policy
Further, an environment of low and negative real interest rates tends to support gold, Tremblay said.
FORBES: Analysts Still Upbeat On Gold, Expect Some 'Sticky' Investment Even After Peak
Real interest rates are negative going out 10 years on the Treasury bond yield curve.
It also means that real interest rates can't be negative, and so are undesirably high.
Real interest rates borrowing costs after adjusting for inflation are lower than in America or Britain.
Real interest rates had been edging up since June, when markets first began to wobble.
Yet, although domestic demand is weak, real interest rates remain high because prices are falling.
But it is hard to see the gold price collapsing unless real interest rates increase sharply.
And short-term real interest rates have not shown any clear trend since 1993, according to Mr Booth.
Some cite low real interest rates as the main reason that prices have held up in Europe.
HIGH-PRICED MONEY Rarely in U.S. history have real interest rates been as high as they are now.
The Federal Reserve reaffirmed last week that real interest rates will remain negative for the long haul.
FORBES: Raising Debt Ceiling Raises Roof For Silver And Gold
It means real interest rates are abnormally high for a country just emerging from a crunching recession.
Year after year of negative real interest rates, punishing savers, bankrupting pension plans, and impoverishing senior citizens.
Winmill highlighted any concrete effort to fix the budget mess and any real tightening in real interest rates.
FORBES: With Gold Set To Peak At $1,700, Miners Like Goldcorp Look Cheap
Real interest rates should fall and the price of gold should thus remain in its secular bull market.
Extensive research conducted by ChannelCapitalResearch.com indicates that small stocks benefit if the Fed substantially lowers real interest rates.
If Fed maintains a relatively tighter monetary policy regarding real interest rates, emphasize large stocks in your portfolio.
Negative real interest rates occur when the inflationary rate, or CPI, is greater than the current interest rate.
FORBES: Central Bank Appetite And The Monetary Case For $10,000 Gold
After all, can anyone expect fixed-income investors to continue to accept plummeting real interest rates for very much longer?
The lower real interest rates become, the less participation there will be in the bond market from private sources.
The answer lies in their view of the root cause of continued high unemployment: excessively high real interest rates.
With negative real interest rates, worldwide currency debasement, and inflation being the real threat ultimately, gold still remains attractive.
That situation produced chronic inflation and low, even negative, real interest rates that sent property prices into the stratosphere.
应用推荐