Rising interest rates, rising inflation

[Administrator]

Ramping up rates: Emerging central banks feel inflation pain

Soaring price pressures have seen rate hike expectations shift up even for central banks in the United States, Australia and Britain. The subsequent rise in global borrowing costs will be highly unwelcome to developing countries, many of which are struggling to return to pre-pandemic economic output levels.
...

https://www.reuters.com/business/finance/ramping-up-rates-emerging-central-banks-feel-inflation-pain-2021-11-03/

In almost every country I know of interest rates are now on the rise.

Anybody got any good understanding of how rising interest rates will affect PM prices?

I expect rising rates will reduce borrowing capacity. Therefore putting downward pressure on real estate prices.

 

[Administrator]

According to inflation calculators, $355.00 in December 1992 would be around $790.00 in December 2024.

 

[Silver Soul]

" Has anybody understood how rising interest rates will affect PM prices? "

Impact of the US Dollar. Rising interest rates often lead to an increase in the value of the US dollar, causing a shift away from precious metals and towards interest-paying accounts. Since precious metals are typically priced in dollars, a stronger dollar can make them more expensive for investors. This situation may lead to decreased demand and, consequently, lower prices shorterm in precious metals. However, the demand for the white metal silver is in great demand for the renewable energy sector and I see its uptrend increase well into 2025 to all-time highs as the demand outstrips the very limited supply. Inflation will slow the industry down and with the threats of Trump tariffs other PMs could stagnate or put lots of pressure on their prices if inflation gets out of control and all demand is lost with trade wars, So, all eyes are on Trump and market trends. Watch the DXY ( USD ) like a hawk it will be the up/down indicator.

 

[alor]

how are the things being manipulated with the tiniest of actions, they use derivatives. some term to do with gamas source
the source of fundings was to the tune of 100x from their decades long JPY 0.01% interest rates
Fed can have no impact on the long term rates, they always TRY to influence the long rates by adjusting the short rates
China can always borrow in 2T USD and at the rate of 50 basis cheaper than the Fed is borrowing
China is buying metals concentrades, so they are not registered in the market, usual way of settling them outside the USD
too much fakes data anyway...

 

[alor]

markets are really segmented
People who trade metals, usually they do not trade the etf, or the shares, sometimes they do
like dealers using futures to hedge for their metals
people who speculate on interest, eg bonds holders may not buy into metals

 

[Silver Soul]

Keep in mind that China is now buying bulk ore in its raw form from mines and processing it cutting out the middleman so from that we don't know what the demand shortfall will be especially in silver

 

[alor]

we will know after 5 years later lol

 

[Silver Soul]

A wildcard that has been prominently on my mind is the imminent risk of a recession in Europe. An economic slowdown will undoubtedly be sparked by an energy crisis, and the increasing distrust among EU nations could very well escalate into a global conflict. History shows that when we find ourselves on this trajectory, fiat currencies typically collapse, while gold and silver—especially in their monetary forms—tend to rise sharply in value, making them excellent trading tools. For Trump, a strong USD is detrimental to trade exports. In a trade war, the Chinese could easily devalue their currency, resulting in high inflation taking hold in the US and leaving him with increasingly dissatisfied Americans at his doorstep. Time for good leadership is needed. Trump.

 

[alor]

China will stop US imports and claims, not to tariff their goods
Cheap Russian gas, the (NS1 and NS2) got blown out
it took 2+ years for German factories to shut.
US exports inflations to the outside world vs China exports deflations

 

[Silver Soul]

China doesn't need US imports. Weapons-grade chips can be sourced from other BRICS countries for new EV tech. The US better not drag its knuckles like a drugged ape as shithole will ensure.