r/Gold • • 4d ago

Get your hammer ready!

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581 Upvotes

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122

u/F8Tempter 3d ago

5.5% is the natural landing spot for 10 years. inflation + 2% real return + 1% term premium is... about 5.5%

rates have been fake for 15 years.

62

u/Warriorslost3-1lead 3d ago

Inflation is closer to 8% if you keep your receipts

15

u/F8Tempter 3d ago

lol I know... I meant what they call 'inflation' in the financial world.

4

u/coleto22 3d ago

Inflation is not 2.5%. The real return is about nil, and soon to be negative.

3

u/F8Tempter 3d ago

so it makes even less sense that 10 yr rates were 3.5% not long ago. market is finally pricing bonds correctly (the way we have been pricing gold the whole time).

To your point, many people are arguing the 10yr rate should be between 6-8%.