Interest Rates, Price Inflation and Silver
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So you feel when interest rates rise the price of silver and gold will fall?
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Great video...I think a lot of people do not understand how inflation works.
Say... you have 10,000 of cash you banked 5 years ago... and the FED prints money... that 10,000 of cash actually today now has only $8,146 of buying power when you banked that 10,000 dollars. Even taking into account you collected say $800 a year compounded on that 10,000k ...the now $13,200 account, inflation has devalued the dollar faster than you collected interest on it.
Folks, you need to learn this.
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Well said, the interest rate vs inflation rate concept is not talked about enough I think.
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The interest rate was making all time high's exactly when silver was making it's all time highs.
999silverrush 2 years ago
Yes, interest rates were very high, but the growth of the CPI was very high as well. For example, in March 1979 the CPI was 69.8 and in March 1980 it had risen to 80.1. That is almost a 15% increase. Also, keep in mind that CPI is likely to understate the real level of price inflation.
silverfyi 2 years ago