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Time Is Money

Aug 17, 2024 • 5 min read

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Gold Price
SpaceX Starlink Satellites

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Gold Price:

Spot gold reached $2,500 an ounce for the first time, driven by market expectations that the U.S. Federal Reserve may soon lower interest rates. On Friday, gold for immediate delivery climbed to $2,500.16 an ounce, setting a new record. This rise was largely influenced by disappointing U.S. housing market data, which fueled speculation that the Fed might pursue more aggressive rate cuts.
The relationship between gold prices and interest rates is well-established. Gold, which does not generate interest or dividends, becomes more attractive when interest rates are low because the opportunity cost of holding gold decreases. This dynamic has played out in the past during periods of monetary easing, where lower rates have often led to higher gold prices as investors seek safe-haven assets.
This year, gold has increased by over 20%, supported by expectations of potential rate cuts and significant purchases by central banks. Additionally, the metal has seen heightened demand due to ongoing geopolitical risks, including tensions in the Middle East and the conflict between Russia and Ukraine, reinforcing its role as a safe-haven investment. This trend echoes past instances where geopolitical uncertainty has driven investors toward gold as a protective measure against economic instability.

SpaceX Starlink Satellites:

AT&T and Verizon have formally requested that the Federal Communications Commission (FCC) reject SpaceX’s proposal to expand its cellular Starlink system, expressing concerns about potential interference with their existing networks. SpaceX is seeking a waiver from the FCC to allow its satellites to operate beyond typical radio frequency limits, with the goal of enhancing coverage, particularly in remote or underserved areas where traditional cellular service may be lacking.
However, AT&T and Verizon have raised alarms, suggesting that this could degrade the performance of their networks, potentially leading to slower data speeds and reduced service quality for their customers. As a result, both companies have urged the FCC to deny SpaceX’s request. The rapid expansion of SpaceX’s Starlink satellite network has caused unease among traditional cellular carriers. With more than 6,000 satellites already deployed and plans to launch services with T-Mobile, SpaceX is on the verge of offering a new form of internet and mobile service that could bypass the need for traditional cell towers.
This technology could enable SpaceX to deliver coverage directly to users' devices via satellite, which is especially appealing in areas where existing networks struggle to provide reliable service. For AT&T and Verizon, this represents a significant disruption, as it challenges the conventional model of cellular service that relies on extensive ground-based infrastructure. The fear for AT&T and Verizon is rooted in the potential for SpaceX's expanding satellite network to dramatically alter the telecommunications landscape.
If SpaceX is granted the flexibility it seeks, it could offer a level of service that not only matches but exceeds that of traditional carriers, particularly in hard-to-reach areas. This could result in a shift of customers away from AT&T and Verizon toward SpaceX, undermining their dominance in the market. The established carriers are concerned that they could lose significant market share, forcing them to invest heavily in new technologies or reconfigure their business models to compete in a rapidly changing environment.

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