Fed policy and its ripple effect on my gold coins - thoughts?

Patricia Miller

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Fed policy and its ripple effect on my gold coins - thoughts?

patricia_miller📊Growing (50-100k)

about 10 hours ago

Key Takeaways

•Okay, so I've been watching the Fed with one eye and my Gold IRA with the other, and honestly, the recent rate hikes have me a bit antsy.
•I put about $75k into my Gold IRA last year – mostly American Gold Eagles and some Canadian Maples, all physical coins.
•I figured the M2 money supply growth was unsustainable, and well, inflation certainly showed up.

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Okay, so I've been watching the Fed with one eye and my Gold IRA with the other, and honestly, the recent rate hikes have me a bit antsy. I put about $75k into my Gold IRA last year – mostly American Gold Eagles and some Canadian Maples, all physical coins. I'm a small business owner here in Denver, and I really saw gold as a safeguard against inflation eating away at my retirement savings after seeing what happened during and after COVID. I figured the M2 money supply growth was unsustainable, and well, inflation certainly showed up.

Now with the Fed doing its thing, raising rates to fight that inflation, I'm trying to make sense of how this impacts my holdings. On one hand, higher rates generally strengthen the dollar, which should make gold less attractive since it becomes more expensive for international buyers. But then, on the other hand, there's always the underlying fear (or hope, depending on your perspective) that the Fed will go too far, tip the economy into a recession, and then gold's safe-haven appeal kicks in again. It feels like a constant tug-of-war.

I know gold doesn't pay interest, so rising rates make interest-bearing assets more appealing comparatively. But I'm not really looking for yield from my Gold IRA; it's more about capital preservation and diversification from the volatile stock market. What are you all seeing? Do you think the Fed's current hawkish stance is a net positive or negative for gold in the medium term? And is anyone else here in a similar boat, watching their retirement gold holdings through this lens?

3 comments

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Best Answer▲ 7 upvotes

matthew_murphy👑Elite (1m-5m)

Interesting take. I get the anxiety around Fed policy, especially with that much in physical gold. But I'm not entirely convinced that rate hikes always translate directly into a "ripple effect" that significantly depreciates your gold coins in the short term. We've seen periods where gold holds its own or even gains during rate increase cycles, often due to other macroeconomic factors or geopolitical instability. It's not always a straightforward inverse relationship. Maybe keep an eye on why the Fed is hiking rates, not just the hikes themselves.

Comments (3)

laura_sanchez💰Established (100-250k)Real Investor✓ Verified•less than a minute ago

Dude, I hear you! Similar boat here. Small business in Austin, put a chunk into my Gold IRA last year, mostly Eagles too. The Fed's been doing its thing and it's definitely made me check my account a bit more often. Not panicking or anything, but it’s hard not to wonder about the short-term bumps when you’re used to seeing those long-term benefits people always talk about. Glad to see I'm not the only one keeping an eye on things!

ronald_morris👑Elite (1m-5m)Real Investor•less than a minute ago

Hey, interesting post! So you mentioned mostly American Gold Eagles and Canadian Maples. Are those mostly 1oz coins, or did you diversify with some fractional sizes as well?

matthew_murphy👑Elite (1m-5m)Real Investor•less than a minute ago

Interesting take. I get the anxiety around Fed policy, especially with that much in physical gold. But I'm not entirely convinced that rate hikes always translate directly into a "ripple effect" that significantly depreciates your gold coins in the short term. We've seen periods where gold holds its own or even gains during rate increase cycles, often due to other macroeconomic factors or geopolitical instability. It's not always a straightforward inverse relationship. Maybe keep an eye on *why* the Fed is hiking rates, not just the hikes themselves.

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