The European Central Bank met yesterday and as expected, kept interest rates at record lows in an attempt to revive growth and spur inflation. The central bank also added that it intends to maintain rates at current levels, or possibly even lower for an extended period of time.
Back in March, the ECB cut its deposit rates deeper into negative territory and increased its stimulus measures. While no action was taken yesterday, the overall message appears to be pretty clear:
Rates could remain low and stimulus could be necessary for a long, long time.
Whether or not such measures have actually been effective remains a topic of debate, but the ECB appears to be unafraid of cutting rates even further into the minus column, a tactic which, according to some analysts, theoretically could work but also carries with it some significant risks of backfiring.
The European Union has thus far not been able to spur inflation, and while deflationary pressures may have abated to a degree, the region will now also have to deal with the potential consequences of Brexit.
The EU is not the only economy fighting economic hardships, and it could be some time before any significant progress is made.
The International Monetary Fund is asking central banks to continue with policies intended to boost growth. The IMF has asked central banks to “continue to use all available instruments to raise inflation, including negative interest rates.”
Negatives rates could potentially spread much further and deeper from current levels, and with such policies could potentially come more risks.
Now may be a good time to consider where you will put money if the era of low or negative interest rates continues.
You could invest in U.S. treasuries and get 1.4% or so for a ten year note…
You could buy equities at what could potentially be a long-term top…
Or, you could consider some alternatives that have the potential for significant upside in such an environment and may potentially help protect your wealth and purchasing power.
Alternatives like physical gold and silver.
If you don’t currently own physical precious metals now may be the ideal time to begin allocating.
If you already own some physical gold and silver, now may be the ideal time to add more.
Whether you are an experienced physical metals investor or brand new, acquiring and holding physical gold and silver has never been easier than it is today.
In fact, all you have to do today is pick up the phone…
Speak with an Advantage Gold account executive today to learn more about physical gold and silver, and how these key precious metals may play an important role in your portfolio. Our precious metals professionals will answer any questions you may have, and can even show you how to begin acquiring and holding physical gold and silver within your IRA account.
Don’t wait for the equity house of cards to fall, or for negative interest rates to come to your local bank. Call us today at 1-800-341-8584.Tags: advantage gold, ecb, gold, growth, IMF, inflation, interest rates, negative interest rates, sliver