HomeDigital MarketingU.S. Money Reserve Clarifies the Relationship Between Interest Rates and Gold Prices

U.S. Money Reserve Clarifies the Relationship Between Interest Rates and Gold Prices

When the Federal Reserve’s Federal Open Market Committee (FOMC) increases interest rates, borrowing costs can rise — a scenario that has unfolded in recent years.

In an attempt to rein in high inflation rates in the United States, the FOMC began raising the target range for the federal funds rate, which banks use to lend each other money, in March 2022. After initially increasing the range from 0–0.25% to 0.25–0.50%, the FOMC enacted a series of increases. By September 2023, the federal funds rate stood at 5.25 to 5.5%.

The average rate for a 30-year fixed-rate mortgage loan, which was 3.76% the week of March 3, 2022, rose to more than 6.4% by the end of 2022, according to Freddie Mac data. As of the week of November 30, 2023, the rate had climbed to 7.22%.

More than a quarter of small business owners say they paid a higher rate on their most recent loan, the nonprofit National Federation of Independent Business said in September.

The Impact on Portfolio Holders

A number of U.S. Money Reserve reviews written by clients of the company suggest that clients’ decisions to purchase precious metals may have been influenced by economic conditions such as rising interest rates and costs, as well as market volatility.

One portfolio holder, Rich, reached out to several providers about converting some of his savings to gold, a goal he ultimately achieved in 2023.

“As our country and the world [seems] to be in such turmoil, I knew I had to make a different choice with my savings to protect it,” Rich says in one of the U.S. Money Reserve reviews on the Better Business Bureau website. “Gold, I found, is the way…and my choice was U.S. Money Reserve.”

Robert E., who purchased gold assets for inclusion in a self-directed individual retirement account, also contributed one of the U.S. Money Reserve reviews published by the Better Business Bureau.

“[It] makes me sleep comfortably knowing I was able to lock in my life savings,” Robert says. “Having someone watch over what is going on and helping me to diversify my portfolio is priceless.”

Placing a precious metals order with U.S. Money Reserve is a simple, fast process.

You can review a selection of available inventory of government-issued bullion, bars, and certified coins on the company’s website. Account Executives are available if you have questions or would like to make a purchase — they can be reached at 1-888-356-7074.



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