Negative Interest Rates

Redpill me on negative interest rates.
I keep seeing (((experts))) and autists claiming they're going to ass fuck us all. Gib mommy gf and answers pls.
Will boomer rocks save us?

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Gold and silver are going to sky rocket this month on negative interest rates.

well if we get negative interest rates i'll dump 100k chf in PM

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It's new waters.
Shits fucked, funds, pensions, credits are all fucked at the right timing...
Who knows, nobody knows, we catapult hard.

howdy

the thing with negative interest rates is, you also have to get rid of cash

but what will replace the Goyim Bucks? The USD is a (((stable))) shit coin
Our grand daddies carried around gold double eagles like chads while their progeny cowers at the thought of no internet for more than a day.

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Trips of Truth
Howdy

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so, are government pensions basically welfare? do the conservatives destroy the government to PWN the libs?

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In a world of negative interest rates, there is essentially no opportunity cost to holding precious metals and they will likely protect your purchasing power when viewed over a relatively long period of time, say 10 or so years. Depending on how skilled or lucky you are, you may also gain quite a bit of purchasing power if you buy and sell and the right times.

So to answer your question, yes, precious metals are a good way to protect your savings from being eviscerated by crooked central banks. They may be overbought at the moment but there should be quite a bit more to run. If you're interested in knowing the history of how gold protects purchasing power, read Roy Jastram's book, "The Golden Constant."

negative interest rates show that central banks have limited control of the market
when other entities have control of the market, they have a tendency towards brinkmanship or trying to capture the market for their own benefit.
neither ends well for the general populace.
negative interest rates also cause inflation of durable goods, which never ends well for politicians.

>but what will replace the Goyim Bucks?

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>negative interest rates also cause inflation of durable goods, which never ends well for politicians.
I don't think so. You're probably thinking about housing, which is supply-constrained. Reducing interest rates to negative levels is not going to cause automobile or television prices, for example, to increase since there is more supply than demand for those things. A college education in the US would likely be another good whose cost will increase with negative interest rates.

I still have a hard time wrapping my mind around the idea that someone in London who walked into a store and bought something that cost a pound would hand over one of these. Like I said on here before, you can't even buy a Big Mac with a pound now.

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we'll just spend it all on....nigger culture that no one wants anymore and....gasoline? for family vacations??
maybe we could make sushi more expensive.

^^this is literally what the economic planners will be doing as the flames rush in

is the jewish whore-queen on the other side of that coin? or britannia?
fuck them both anyway

>there is essentially no opportunity cost to holding precious metals
why

>1913
Please tell me you're not from the UK.

Which is good news if you were dollar cost averaging for the last several years and regularly investing in physical PMs before they got sexy. Buying now as they're peaking, you would be making a loss just the same as putting your cash in a negative interest rate account. This is why you buy bonds and gold when interest rates are high, fellow goys. It's too late now.

Pretty sure the modern sovereign has always had a bullion value greater than a pound. The face value just denotes it as legal tender (which has tax advantages) and puts in a floor value were gold to hypothetically plummet in value.

As legal tender coinage, sovereigns always feature the current monarch. As the other guy pointed out that wouldn't be Elizabeth in 1913.

Bitcoin is even better.

>magic internet "money"
lawl ok kid what're u, 12?

based and globalist pilled

Howdy

>Relies 100% on electric grid
>Better
Pick one

Bought 50 oz. this month and it is my first 50 oz. Did I fuck up

>buy bonds for [price]
>sell bonds for [higher price]
>profit
That's literally all there is to it. Bonds are no longer about the yield, it's just a ponzi scheme

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50 oz of silver. I wish gold Kek I am a poormie

increasingly negative rates make non-yielding assets like gold and bitcoin more attractive by comparison

When you have positive interest rates, you are giving up guaranteed earned interest when you buy precious metals. That is, if you have $100,000 and put it in a savings account earning $5,000/year, you are giving up that guaranteed $5,000/year to purchase precious metals. If you buy $100,000 of precious metals, you're essentially giving up $5,000 every year to hold those metals. If, at the end of the investment period, the precious metals do not go up in price, you've lost $5,000 * N (N = number of years of investment period) in guaranteed money. That is your opportunity cost.

Obviously, in a zero or negative interest rate environment, you're not giving up any guaranteed money to invest in precious metals. You may still have a capital loss but, long term, precious metals have done an outstanding job of protecting purchasing power.

Do you think there is any chance of hell for the world to exist ZIRP and QE? I don't think there is barring an utter catastrophe (war, for example) or a something akin to a miracle (someone discovers a limitless and free source of energy and, in an act of altruism, gives away the invention for free).

Yes, but it has historically been seen as a safe asset. What happens when that is no longer is the case? People move into safer assets like gold & silver. I believe this will cause the PM market to explode.
>t. Mike Maloney

In the Victorian era, buying a Big Mac, if one existed, probably would have only cost a few pence. A pound was quite a bit of money then just as $20 in the 1920s was a lot of money in the US. I suspect most regular people in those eras were not carrying around sovereigns or double eagles on a regular basis.

So will everyone.

PMs will 50x in price

Aren't a lot of Swiss bonds already near or in negative interest rate territory?

>thinking its peaking

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Because a pound probably would have bought a lot more than a big mac back then...

you can't eat gold so gold is also useless

>you can't eat bitcoin so bitcoin is useless
ftfy

can't eat dollars either

You are talking out of both ends of your mouth and make as much sense as a soup sandwich

>I still have a hard time wrapping my mind around the idea that someone in London who walked into a store and bought something that cost a pound would hand over one of these.

You would use silver

For me, it's emerging market bonds and long term corporate debt to weather this

long GLD?

(too lazy to invest in physical gold, fite me cunts)

I wish I would have bought a couple of those last year.

Alas, you're only going to increase or protect your wealth through dumb luck. It's not difficult to understand what I wrote. Here's a hint: Negative interest rates *guarantee* that you'll lose money; buying precious metals does *not* guarantee that you'll lose money.

And you can look up any introductory economics textbook for an explanation of "opportunity cost."

Negative interest rates are super great for the economy. This is the best US economy ever, of all time. It has never been better, and it is all because of Donald Trump. We shouldn’t have the fed raising rates, hurting the economy and jobs! They never raised rates when Obama was president, raising them now would only undermine Trump’s economic genius. European countries have lowered their interest rates so much they are negative! USA needs to compete and make rates even lower! Fed acting very bad!

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No expert on the planet has realistically predicted the US will have negative interest rates.

If any of you believe this in any real way, please spend one tenth of the time you spend jerking off reading economics books.

>No expert on the planet has realistically predicted the US will have negative interest rates.
ummmm, how did we get to this mess? Oh yeah,the experts!