Posted on Aug 19, 2019

Money Metals Exchange

The world has truly entered uncharted waters with negative interest rates spreading so far and wide.

Frank Holmes, CEO of US Global Investors, recently noted that a whopping 25% of all bonds sold globally now carry a negative yield. “Investors” are even buying some “junk” rated bonds which will repay the bearer less than purchase price upon maturity.

Now European banks, who have been absorbing the European Central Bank’s 0.4% charge to hold deposits, are throwing in the towel and getting ready to pass those charges on to clients.

Wealthy depositors at the Swiss bank UBS will soon start paying the bank 3/4 percent to hold cash balances above 2 million Swiss francs.

Some of those clients may turn to physical gold. For starters, the 0.75% negative interest rate to hold cash is roughly double the cost of storing $2 million in gold bullion.
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