Why are interest rates the opportunity cost of holding gold

Assignment Help Finance Basics

Reference no: EM131304108

An article in the Economist magazine notes that "monetary policy has been keeping . . . interest rates, and thus the opportunity cost of holding gold, low and seems set to do so for a while." Why are interest rates the opportunity cost of holding gold? What effect are low interest rates likely to have on the price of gold?

Reference no: EM131304108

Questions Cloud

With the removal of property as a voting qualification : With the removal of property as a voting qualification, explain the argument for voting restrictions for women and African-Americans. Wren .n BUM, 13. the Democratic Party (377).How does the formation and pat. of Marlin Van Buren, Democratic Party ..

What are the primary concerns of business customers : Identify, describe, and give examples of the four major types of business markets.- What are the primary concerns of business customers?

Suppose tile current yield on a one-year : Suppose tile current yield on a one-year, zero coupon bond is: 3% while the yield on a five-year, zero coupon bond is 5%. Neither bond has any risk of default. Suppose you plan to invest for one year. You will earn more over the year by investing in ..

What are the commonly used methods of business buying : List several characteristics that differentiate transactions involving business customers from consumer transactions.

Why are interest rates the opportunity cost of holding gold : Why are interest rates the opportunity cost of holding gold? What effect are low interest rates likely to have on the price of gold?

Premiums received are to be used to service the debt issue : The capital projects fund temporary accounts were closed, and the capital projects fund was closed by transferring remaining funds to the debt service fund for use in debt repayment. The Parks and Recreation Special Revenue Fund transferred $250,000 ..

What are the major components of a firms buying center : How does demand for business products differ from consumer demand?- What are the major components of a firm's buying center?

Plot the data on a scatter plot : Plot the data on a scatter plot. Determine the ideal number of clusters. Choose random center points (centroids) for each cluster. Using a standard distance formula measure the distance from each data point to each center point.

Determine the names and addresses of potential customers : How do environmental, business, interpersonal, and individual factors affect business purchases?- What function does an industrial classification system help marketers perform?

User Account

All Pages