--- title: "Meaning & Key Takeaway of: When interest rates are low we have…" description: "\"When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.\"..." image: "https://sms4smile.com/quotes/i/20f/george-soros-1593_assets_when-interest-rates-are-low-we-have-cond_924860.jpg" --- # When interest rates are low we have conditions for asset… ![“When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.” quote by George Soros](https://sms4smile.com/quotes/i/20f/george-soros-1593_assets_when-interest-rates-are-low-we-have-cond_924860.jpg) [Download](https://sms4smile.com/quotes/i/20f/george-soros-1593_assets_when-interest-rates-are-low-we-have-cond_924860.jpg) [Open image](https://sms4smile.com/quotes/i/20f/george-soros-1593_assets_when-interest-rates-are-low-we-have-cond_924860.jpg) > “When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.” [George Soros](https://sms4smile.com/quotes/author/george-soros/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Low interest rates create cheap credit, encouraging speculative investment that inflates asset prices, especially in gold. **In simple terms:** Cheap credit fuels asset bubbles, especially gold. Key Takeaway Watch credit conditions and diversify. Themes economics finance speculation inflation gold Mood cautious analytical concerned Type analytical financial When to use this quote - investment decisions - portfolio diversification - policy analysis - wealth planning Key Concepts monetary policy asset valuation risk management Questions to Reflect On - How do you assess bubble risk in your portfolio? - What safeguards can mitigate gold overvaluation? A Different Perspective Bubbles can persist despite warnings if demand remains high. ★ ★ ★ ★ ★ No ratings yet [Gold](https://sms4smile.com/quotes/about/gold/) [Interest](https://sms4smile.com/quotes/about/interest/) [Investing](https://sms4smile.com/quotes/about/investing/) [Moments](https://sms4smile.com/quotes/about/moments/) [Time](https://sms4smile.com/quotes/about/time/) ## Related quotes > [The ultimate asset bubble is gold.](https://sms4smile.com/quotes/george-soros/the-ultimate-asset-bubble-is-gold/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [What is fame? an empty bubble; Gold? a transient, shining trouble.](https://sms4smile.com/quotes/james-grainger/what-is-fame-an-empty-bubble-gold-a-transient-shining-trouble/) James Grainger > [“It is ludicrous to believe that asset bubbles can only be recognized in hindsight,” he wrote. “There are specific identifiers that are entirely recognizable…](https://sms4smile.com/quotes/michael-lewis/it-is-ludicrous-to-believe-that-asset-bubbles-can-only-be-recognized-2/) [Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/) > [Every serious deflation I've looked at is preceded by an asset bubble, and then it bursts.](https://sms4smile.com/quotes/stanley-druckenmiller/every-serious-deflation-i-ve-looked-at-is-preceded-by-an-asset-bubble/) [Stanley Druckenmiller](https://sms4smile.com/quotes/author/stanley-druckenmiller/) > [We as central bankers need not be concerned if a collapsing financial asset bubble does not threaten to impair the real economy, its production,…](https://sms4smile.com/quotes/alan-greenspan/we-as-central-bankers-need-not-be-concerned-if-a-collapsing-financial/) [Alan Greenspan](https://sms4smile.com/quotes/author/alan-greenspan/) > [Yellen’s comments suggest, and I agree, that we are in an asset bubble.](https://sms4smile.com/quotes/carl-icahn/yellen-s-comments-suggest-and-i-agree-that-we-are-in-an-asset-bubble/) [Carl Icahn](https://sms4smile.com/quotes/author/carl-icahn/) > [The way you create deflation is you create an asset bubble.](https://sms4smile.com/quotes/stanley-druckenmiller/the-way-you-create-deflation-is-you-create-an-asset-bubble/) [Stanley Druckenmiller](https://sms4smile.com/quotes/author/stanley-druckenmiller/) > [It's important for the Fed, hard as it is, to attempt to detect asset bubbles while they're forming.](https://sms4smile.com/quotes/janet-yellen/it-s-important-for-the-fed-hard-as-it-is-to-attempt-to-detect-asset/) [Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/) > [Asset bubbles have happened even without not-so-easy money. And, in a depressed economy, where alternative uses of money are not great, people are going…](https://sms4smile.com/quotes/paul-krugman/asset-bubbles-have-happened-even-without-not-so-easy-money-and-in-a/) [Paul Krugman](https://sms4smile.com/quotes/author/paul-krugman/) > [What we need to understand is, one, that there are market failures; and two, that there are things like asset bubbles and irrational exuberance.…](https://sms4smile.com/quotes/nouriel-roubini/what-we-need-to-understand-is-one-that-there-are-market-failures-and/) [Nouriel Roubini](https://sms4smile.com/quotes/author/nouriel-roubini/) > [It is ludicrous to believe that asset bubbles can only be recognized in hindsight.](https://sms4smile.com/quotes/michael-burry/it-is-ludicrous-to-believe-that-asset-bubbles-can-only-be-recognized/) [Michael Burry](https://sms4smile.com/quotes/author/michael-burry/) > [The lower interest rates fueled housing and consumption booms in countries such as Spain and Ireland. At the same time, Germany, struggling with the…](https://sms4smile.com/quotes/george-soros/the-lower-interest-rates-fueled-housing-and-consumption-booms-in/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [At times of recession, running a budget deficit is highly desirable. Once the economy begins to recover, you have to balance the budget. But…](https://sms4smile.com/quotes/george-soros/at-times-of-recession-running-a-budget-deficit-is-highly-desirable/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Why, just a couple of economic seasons ago, was idle cash considered an indication of bad management or lazy management? Because it meant that…](https://sms4smile.com/quotes/malcolm-forbes/why-just-a-couple-of-economic-seasons-ago-was-idle-cash-considered-an/) [Malcolm Forbes](https://sms4smile.com/quotes/author/malcolm-forbes/) > [Right now we're concerned about budget. Right now we're concerned about the prospect of interest rate rise. We're concerned about government corruption, government handing…](https://sms4smile.com/quotes/amity-shlaes/right-now-we-re-concerned-about-budget-right-now-we-re-concerned/) [Amity Shlaes](https://sms4smile.com/quotes/author/amity-shlaes/) ## More by George Soros > [Merkel has realized that the euro is not working, but she cannot change the narrative she has created because that narrative has caught the…](https://sms4smile.com/quotes/george-soros/merkel-has-realized-that-the-euro-is-not-working-but-she-cannot/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [At times of recession, running a budget deficit is highly desirable. Once the economy begins to recover, you have to balance the budget. But…](https://sms4smile.com/quotes/george-soros/at-times-of-recession-running-a-budget-deficit-is-highly-desirable/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Markets are designed to allow individuals to look after their private needs and to pursue profit. It's really a great invention and I wouldn't…](https://sms4smile.com/quotes/george-soros/markets-are-designed-to-allow-individuals-to-look-after-their-private/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [We must not forget; but we must forgive. Suffering often such compassion from the Jewish community. It was Jewish groups in the US who…](https://sms4smile.com/quotes/george-soros/we-must-not-forget-but-we-must-forgive-suffering-often-such/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [I very often used to get backaches due to the fact that I was wrong. Whenever you are wrong you have to fight or…](https://sms4smile.com/quotes/george-soros/i-very-often-used-to-get-backaches-due-to-the-fact-that-i-was-wrong/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [We are the most powerful nation on earth. No external power, no terrorist organization can defeat us. But we can defeat ourselves by getting…](https://sms4smile.com/quotes/george-soros/we-are-the-most-powerful-nation-on-earth-no-external-power-no/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected.](https://sms4smile.com/quotes/george-soros/markets-are-constantly-in-a-state-of-uncertainty-and-flux-and-money/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [What works for Germany can't work for the rest of Europe: No country can run a chronic surplus without others running deficits.](https://sms4smile.com/quotes/george-soros/what-works-for-germany-can-t-work-for-the-rest-of-europe-no-country/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [If truth be known, I carried some rather potent messianic fantasies with me from childhood which I felt I had to control, otherwise I…](https://sms4smile.com/quotes/george-soros/if-truth-be-known-i-carried-some-rather-potent-messianic-fantasies/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Find the trend whose premise is false, and bet against it.](https://sms4smile.com/quotes/george-soros/find-the-trend-whose-premise-is-false-and-bet-against-it/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [ We \[at Soros Fund Management\] use options and more exotic derivatives sparingly. We try to catch new trends early and in later stages we… ](https://sms4smile.com/quotes/george-soros/we-at-soros-fund-management-use-options-and-more-exotic-derivatives/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [“On the abstract level, I have turned the belief in my own fallibility into the cornerstone of an elaborate philosophy. On a personal level,…](https://sms4smile.com/quotes/george-soros/on-the-abstract-level-i-have-turned-the-belief-in-my-own-fallibility/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [The main difference between me and other people who have amassed this kind of money is that I am primarily interested in ideas, and…](https://sms4smile.com/quotes/george-soros/the-main-difference-between-me-and-other-people-who-have-amassed-this/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [By creating the European Central Bank, the member states exposed their own government bonds to the risk of default. Developed countries that issue bonds…](https://sms4smile.com/quotes/george-soros/by-creating-the-european-central-bank-the-member-states-exposed-their/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) > [Every bubble has two components: something - some real trend, and a misconception about that trend.](https://sms4smile.com/quotes/george-soros/every-bubble-has-two-components-something-some-real-trend-and-a/) [George Soros](https://sms4smile.com/quotes/author/george-soros/) [Explore all 225 George Soros quotes ](https://sms4smile.com/quotes/author/george-soros/) ## More Assets quotes > [A great smile is a wonderful asset, but a good heart is pure gold.](https://sms4smile.com/quotes/dolly-parton/a-great-smile-is-a-wonderful-asset-but-a-good-heart-is-pure-gold/) [Dolly Parton](https://sms4smile.com/quotes/author/dolly-parton/) > [Most people put money in their piggy bank. I buy a goose that lays golden eggs over and over again. That's what an asset…](https://sms4smile.com/quotes/robert-kiyosaki/most-people-put-money-in-their-piggy-bank-i-buy-a-goose-that-lays/) [Robert Kiyosaki](https://sms4smile.com/quotes/author/robert-kiyosaki/) > [Groupon has some interesting assets.](https://sms4smile.com/quotes/matt-cohler/groupon-has-some-interesting-assets/) [Matt Cohler](https://sms4smile.com/quotes/author/matt-cohler/) > [Developing expertise or assets that are not easily copied is essential; otherwise you're just a middleman.](https://sms4smile.com/quotes/seth-godin/developing-expertise-or-assets-that-are-not-easily-copied-is/) [Seth Godin](https://sms4smile.com/quotes/author/seth-godin/) > [Well I think they broke the mould when they made me and being humble is one of my great assets.](https://sms4smile.com/quotes/larry-hagman/well-i-think-they-broke-the-mould-when-they-made-me-and-being-humble/) [Larry Hagman](https://sms4smile.com/quotes/author/larry-hagman/) > [3 people get stranded on a remote Island A Banker, a Daily Mail reader & an Asylum seeker All they have to eat is…](https://sms4smile.com/quotes/christopher-brookmyre/3-people-get-stranded-on-a-remote-island-a-banker-a-daily-mail-reader/) [Christopher Brookmyre](https://sms4smile.com/quotes/author/christopher-brookmyre/) > [Why doesn't the United States take over the monarchy and unite with England? England does have important assets. Naturally the longer you wait, the…](https://sms4smile.com/quotes/w-h-auden/why-doesn-t-the-united-states-take-over-the-monarchy-and-unite-with/) [W. H. Auden](https://sms4smile.com/quotes/author/w-h-auden/) > [You have great assets if you're a dual-threat, but you still have to throw from the pocket and do all those types of things.](https://sms4smile.com/quotes/marcus-mariota/you-have-great-assets-if-you-re-a-dual-threat-but-you-still-have-to/) [Marcus Mariota](https://sms4smile.com/quotes/author/marcus-mariota/) > [Regulations for international accounting and funding will have to be examined to identify policies that inadvertently discourage institutional investors from putting their resources into…](https://sms4smile.com/quotes/jose-angel-gurria/regulations-for-international-accounting-and-funding-will-have-to-be/) [Jose Angel Gurria](https://sms4smile.com/quotes/author/jose-angel-gurria/) > [I think Kwame will be an asset to the Lakers.](https://sms4smile.com/quotes/kareem-abdul-jabbar/i-think-kwame-will-be-an-asset-to-the-lakers/) [Kareem Abdul-Jabbar](https://sms4smile.com/quotes/author/kareem-abdul-jabbar/) > [ \[When I die\], I will decidedly not be regretting missed opportunities for a good time. My regrets will be more along the lines of… ](https://sms4smile.com/quotes/anthony-bourdain/when-i-die-i-will-decidedly-not-be-regretting-missed-opportunities/) [Anthony Bourdain](https://sms4smile.com/quotes/author/anthony-bourdain/) > [Sourav's greatest asset is his ability to communicate. He is a naturally very confident person. He encourages his team, is a great motivator and…](https://sms4smile.com/quotes/ravi-shastri/sourav-s-greatest-asset-is-his-ability-to-communicate-he-is-a/) [Ravi Shastri](https://sms4smile.com/quotes/author/ravi-shastri/) > [When you consider the sheer magnitude of investable equities to choose from in the world's emerging markets, you realize that finding one that looks…](https://sms4smile.com/quotes/mark-mobius/when-you-consider-the-sheer-magnitude-of-investable-equities-to/) [Mark Mobius](https://sms4smile.com/quotes/author/mark-mobius/) > [I was impressed for the ten thousandth time by the fact that literature illuminates life only for those to whom books are a necessity.…](https://sms4smile.com/quotes/anthony-powell/i-was-impressed-for-the-ten-thousandth-time-by-the-fact-that/) [Anthony Powell](https://sms4smile.com/quotes/author/anthony-powell/) > [If God was the owner, I was the manager. I needed to adopt a steward's mentality toward the assets He had entrusted - not…](https://sms4smile.com/quotes/randy-alcorn/if-god-was-the-owner-i-was-the-manager-i-needed-to-adopt-a-steward-s/) [Randy Alcorn](https://sms4smile.com/quotes/author/randy-alcorn/) Browse all 957 Assets quotes ```json { "@context": "https://schema.org", "@graph": [ { "@type": "Quotation", "text": "When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold.", "creator": { "@type": "Person", "name": "George Soros" }, "isPartOf": { "@id": "https://sms4smile.com/quotes/#website" }, "url": "https://sms4smile.com/quotes/george-soros/when-interest-rates-are-low-we-have-conditions-for-asset-bubbles-to/", "about": { "@type": "Thing", "name": "Assets" }, "@id": "https://sms4smile.com/quotes/george-soros/when-interest-rates-are-low-we-have-conditions-for-asset-bubbles-to/#quotation", "image": { "@type": "ImageObject", "@id": "https://sms4smile.com/quotes/i/20f/george-soros-1593_assets_when-interest-rates-are-low-we-have-cond_924860.jpg", "contentUrl": "https://sms4smile.com/quotes/i/20f/george-soros-1593_assets_when-interest-rates-are-low-we-have-cond_924860.jpg", "url": "https://sms4smile.com/quotes/i/20f/george-soros-1593_assets_when-interest-rates-are-low-we-have-cond_924860.jpg", "width": 1080, "height": 1080, "caption": "“When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the…” — George Soros", "creditText": "SMS4Smile Quotes", "creator": { "@id": "https://sms4smile.com/quotes/#organization" } } }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://sms4smile.com/" }, { "@type": "ListItem", "position": 2, "name": "Quotes", "item": "https://sms4smile.com/quotes/" }, { "@type": "ListItem", "position": 3, "name": "George Soros", "item": "https://sms4smile.com/quotes/author/george-soros/" }, { "@type": "ListItem", "position": 4, "name": "When interest rates are low we...", "item": "https://sms4smile.com/quotes/george-soros/when-interest-rates-are-low-we-have-conditions-for-asset-bubbles-to/" } ], "@id": "https://sms4smile.com/quotes/george-soros/when-interest-rates-are-low-we-have-conditions-for-asset-bubbles-to/#breadcrumb" }, { "@type": "WebSite", "@id": "https://sms4smile.com/quotes/#website", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "publisher": { "@id": "https://sms4smile.com/quotes/#organization" } }, { "@type": "Organization", "@id": "https://sms4smile.com/quotes/#organization", "name": "SMS4Smile Quotes", "url": "https://sms4smile.com/quotes/", "logo": { "@type": "ImageObject", "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png", "width": 512, "height": 512 } } ] } ```