has experienced its longest and strongest bull markets during periods
of rising interest rates, says market analyst Mike Fuljenz, president
Coin and Bullion in Beaumont, Texas.
why Fuljenz believes gold investors should not fear the likelihood of
U.S. interests rate hikes in the near future.
Metals Market Report, Fuljenz provides the
following facts about the last four rate increase cycles, from 1986,
1994, 1999 and 2004:
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December 1986, to Sept. 4, 1987, the Federal Reserve raised rates four
times, from 5.875 percent to 7.25 percent, while gold rose from an
average of $391 in December 1986 to $465 on September 4, 1987.
Feb. 4, 1994, to Feb. 1, 1995, the Federal Reserve raised rates six
times, from 3.25 percent to 6 percent. Gold was flat throughout that
entire year, seldom wavering outside a range of $370 to $390.
June 30, 1999, to May 16, 2000, the Federal Reserve raised rates five
times, from 4.75 percent to 6.5 percent. During that time, gold rose
gradually from $262 to $276.
June 30, 2004, to June 29, 2006, the Federal Reserve raised rates 17
times, by 0.25 percent each time, from 1 percent to 5.25 percent.
During that time, gold rose from $395 to $613.
also notes the current "torrid" pace at which the U.S. Mint is selling American Eagle gold bullion coins.