Saturday, February 22, 2014

Gold was rising along with higher interest rates during the 70s. Do you see the same type of correlation today?

Higher interest rates would bring stress on the banking system, which could potentially wreak havoc on stocks.

When it comes to gold, however, I believe the current demand should already have propelled the price higher. Demand is taking gold off the shelves; that is why I am so comfortable sitting on our positions here.

So I do not draw a unique linkage between higher interest rates and gold going up.

- Source, Eric Sprott: