The prime lending rate , the spot on silver will decline

  1. profile image49
    Lindaktiplerposted 6 years ago

    The prime lending rate , the spot on silver will decline

    I was told that when the prime lending rate goes up that's a warning that the spot on silver will start to go down.  Why is that?

  2. MicahI profile image86
    MicahIposted 6 years ago

    When the lending rate increases, that's a sign that the Fed is trying to control the growth of the economy and as a result, inflation.  Silver and Gold are hedges against inflation, so when the Fed raises rates to try and stop inflation, Silver and Gold become less valuable, and therefore their prices decrease.

 
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