 |
The gold market has seen some intense volatility over the last week…
It dropped as much as $40 in one day (about a 3% fall). Investors the world over are panicking over whether the era of ultralow interest rates has come to an end (spoiler alert: It hasn’t).
The latest rumor driving this hysteria comes out of Europe…
It says the European Central Bank (ECB) is about to end its 80 billion euros-per-month ($89.1 billion) quantitative easing program (or “QE,” banker speak for money printing). These gold investors fear higher interest rates from the stand-down… since higher interest rates can have a negative effect on gold.
But as The Palm Beach Letter’s Teeka Tiwari points out, interest rates in America went lower after the U.S. ended its own QE program. This “irrational” result has set up an ideal contrarian buying opportunity in gold today. Learn all the details in today’s 3-Minute Market Minder.
(Current Palm Beach Letter subscribers can review Teeka’s preferred safe alternative gold recommendation right here.)