Loading ...Chart for 10 yr showing 2.61 percent today. Recent Sept low was 2.05%. Add GLD (gold) in the “compare” box and click on 1 year.
http://finance.google.com/finance?q=INDEXCBOE%3ATNX&sq=%24tnx&sp=2&ei=vCNhWrnqDoOee57xiIgP
If anyone remembers, from 1971 to 1981 gold silver and interest rates went up together. From 1971 to 1981 lots of liquidity was SUCKED out of the system
Rates went 6% to 21% prime rate. Gold went $140 to $800, until the rates kicked in. The Fed head Volker was “behind the curve” didn’t jack them up high enough fast enough to “quench” gold action the whole time, 10 years. Everybody sold everything they had for cash, to deposit in the bank with 18% CDs.
Some SMARTER people bought 30 year T-Bonds sporting a 16.8% for 30 years. The CD people got screwed because every time they renewed it rates were lower.