To The Moon

**Why I Buy IAU Shares During Interest Rate Drops**

When interest rates drop, I see it as the perfect opportunity to buy shares of IAU (iShares Gold Trust). This ETF tracks the price of physical gold, giving me direct exposure to gold without having to hold the metal itself. The relationship between gold and interest rates is key to understanding why IAU tends to rise when rates fall.

Gold doesn’t pay interest or dividends, so when interest rates are high, investors usually prefer assets like bonds, which offer better returns. However, when interest rates drop, the yield on those assets becomes less attractive, and that’s when gold starts to shine. Gold’s role as a store of value becomes more appealing, and its price typically increases, driving up the value of IAU shares as well$iShares Gold Trust(IAU)$  

I bought IAU when it was priced at $48.25, anticipating a drop in interest rates. As expected, when rates fell, the price of IAU rose to $50.25. That $2 increase per share may not seem like a lot, but it represents a solid 4.14% gain ($2 / $48.25 x 100). For a stable asset like gold, that’s a significant return, especially in a short period of time.

In addition to benefiting from rate cuts, I also see gold as a hedge against inflation and economic uncertainty, both of which often accompany lower interest rates. Central banks reduce rates to stimulate growth, but this can lead to inflation. In these times, gold tends to hold its value or even appreciate, protecting my portfolio.

By timing my IAU purchase during a period of declining interest rates, I’ve capitalized on the positive movement of gold, taking advantage of market dynamics to grow my investment.

@CaptainTiger 

@TigerStars 

@MillionaireTiger 

@TigerStars @MillionaireTiger @TigerTradingNotes do subscribe To all the tigers too ! And my channel . This is not a investment advice on to sell or buy IAU . More of a simple sharing on my thoughts process for self learning and shared learning for the community do subscribe to my live trades too !