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What Happens to Gold During a War

The creator explains that during wartime, rising oil prices lead to increased inflation, which in turn drives up interest rates on US government debt. This causes institutional investors to move money out of non-interest-bearing assets like gold and silver into higher-yielding government bonds, resulting in an initial drop in precious metal prices.

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Silver prices tend to drop initially when a new war starts due to rising interest rates making government debt more attractive.

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