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Interest rates so low - don't bother saving!

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Comments

  • When interest rates go back up to normal it will slow down gold and silvers yearly gains, but that could be years away yet.

    Here is the ironic thing, when interest rates are raised up high it will also be when gold is rising fastest.

    The reason being is that its not the headline rate but the effective rate difference between cash returns and asset inflation.

    The way to view this clearly is to examine in a currency from every continent. IF we just view the world in sterling prices, its going to give a goldfish bowl perspective.

    They can have interest rates at 20% but we can also have inflation rates at 20% so why is this any more influential on gold then our low rates now

    The way I see it is gold is about stability, its boring and as said above it does nothing and gives no interest.
    So when its highest value will be when we are most unsure of everything, no doubt they will be raising rates and changing all sorts of rules and laws to calm things down
  • Im in the camp that all humans are ultimately equal in their possible success and failures and any manipulation is the reason for its own failure

    I know gold is more freely traded then bonds or currency is. They are a natural, useful global resource. We got to assume because of that superior balance in supply to demand, that is why they will be worth more in the end to people

    They are not used as often as bonds now, so thats the biggest manipulation I would call out. They act inversely to government debt and politics. I dont follow 'secret stuff' as big drivers of anything, the best place to hide is in plain sight.

    Transaction frauds may occur but its not significant
    The reason you should agree is that gold or anything of limited supply but unlimited use is less easy to manipulate then what is written on paper.

    Naturally one will transcend the other, hence prices will certainly rise. If fraud is equally likely with both, we might as well stick with paper promises and save the effort of storing 'value'
  • System
    System Posts: 178,374 Community Admin
    10,000 Posts Photogenic Name Dropper
    I get 4.25% in my 3 year fixed ISA :)
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • ScarletBea
    ScarletBea Posts: 2,921 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I've got a 3-year bond ending now.
    It's a sad state of affairs that putting that in my instant access account is the option that gives me the highest interest, if I don't want to fix for 5 years (which I don't)...
    Being brave is going after your dreams head on
  • atush
    atush Posts: 18,731 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Yeah, it is sad.

    But I am happy I am paying less than 1% on my mtg. Swings and roundabouts really.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    This is one of the few times that I wish we had a mortgage!
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I get 4.25% in my 3 year fixed ISA :)

    and after the Fixed Term ends?
  • Thrugelmir wrote: »
    and after the Fixed Term ends?

    About 2.25% if you're lucky I would think. But at least you won't lose nominal capital like you might on the stock market.
    No-one would remember the Good Samaritan if he'd only had good intentions. He had money as well.

    The problem with socialism is that eventually you run out of other people's money.

    Margaret Thatcher
  • planemad
    planemad Posts: 569 Forumite
    Part of the Furniture Combo Breaker
    Glad I opened up a Tesco bond in October @ 3.2% - rates seem to have dropped like a stone since then!
  • innovate
    innovate Posts: 16,217 Forumite
    10,000 Posts Combo Breaker
    About 2.25% if you're lucky I would think. But at least you won't lose nominal capital like you might on the stock market.

    There are currently 2-year fixed deals at 3.1% about. Obviously way lower than 4.25%, but also way higher than 2.25%.
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