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Replying to Avatar oldgeezy

Let me try to understand this. if the price of gold rises, the return on a 10 year falls. because why hold someone's debt when you can hold an asset that is appreciating. Or is it more the case that low interest rates drive investors to gold which pumps the price.I

in either case, the significance of gold prices rising while 10 year returns are also rising ... is that a reflection of the Treasury paying above market rate for interest..?

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Ghost of Truth 1y ago

I think the correlation is: if bonds fall (yield rises) there are rising oportunity costs for holding gold that doesn't yield anything

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