Don’t have to own gold to take advantage of the upward movement or price swings in general.
That’s what futures and options are for.
Zero percent.
What’s after that?
What comes after is the end of the Fed.
“Zero percent.
What’s after that?”
After Zero comes negative rates whereby we pay the Treasury for the privilege holding our money for safe keeping. It is already happening in Germany and Switzerland.
If it happens here expect the stock and bond market to explode upwards dramatically as cash holders seek any sort of return better than 0-
However I don’t see this happening since our debt load would not allow for bonds being so attractive they would find buyers willing to accept no reward for their risk.
Re: Zero percent. What’s after that?
Well, in Japan and Germany, their ten year sovereign bonds pay “NEGATIVE” interest.
Germany: -0.618% (per year)
Japan: -0.225% (per year)
In other words, after bond holders loan money to their government, the government does not pay interest to the bond holder.
Instead, the bond holder pays interest to the government!
Can anyone give me a basic explanation as to why any rational person or corporation would “loan” money on those terms?
Negative interest rates on large deposits comes after zero.
Which is why it doesn’t seem wise for the Fed to drop its rate below the 2.5% it’s currently at.