Gold (and Silver) Pays Interest? Paper Does Not? - Bullion Bulls Canada

We live in a fantasy world. However, it’s not just an ordinary fantasy world, it is a crazy fantasy world. Regular readers know it as “the Wonderland Matrix”, a realm where nothing ever has to make sense. Yet another illustration of this insane realm comes via looking at our money (or, at least what the bankers call “money”).

For many, many years, if you asked any banker what monetary instrument should be used in order to store our liquid wealth, you would always get the same answer: use the bankers’ paper currencies rather than humanity’s oldest and most-trusted monetary instrument(s), gold (and silver). And each time a banker expressed this preference, he/she would supply the same reason: “gold generates no income.”

Gold generates no income, meaning it pays no yield (i.e. interest). What was implied, but never stated, was that the bankers’ paper currencies always produced a yield, and thus paid interest. Of course, conveniently, the bankers always omitted one detail when they made their cute comparison: “inflation.”

Why, historically, have the bankers been forced to pay a yield to depositors, as compensation for storing their paper currencies on account? Because unlike gold (and silver), the bankers’ paper currencies are relentlessly devoured by inflation. Let’s make a comparison which bankers never make.

Two thousand years ago; in ancient Rome, with a one-ounce gold coin a man could purchase the finest, tailor-made toga, along with the other accessories of that era, a belt and sandals. In the Middle Ages; with a one-ounce gold coin a gentleman could purchase a finely-tailored suit, along with the accessories of that era.

Today, despite the price of gold being severely and perennially suppressed, a gentleman can still purchase a suit and accessories with a one-ounce gold coin – but today you would be forced to purchase ‘off the rack.’ Still, that’s a pretty good track record for wealth preservation over a span of two thousand years.

Then we have the bankers’ paper currencies. Ask any banker, and they will tell you without hesitation that the world’s premier paper currency is still the U.S. dollar. In the one hundred years since the Federal Reserve was place in charge of “protecting” the dollar, it has lost roughly 99% of its value (i.e. purchasing power).

What would cost you $100 today could be purchased with $1, on the day that the Federal Reserve was created. That’s called “inflation”, and if you ask any banker, they will tell you that we need this inflation. Indeed, the bankers (including those at the Fed) continually whine that “we don’t have enough inflation” – meaning they would like to see our paper wealth being devoured much more quickly.

Gold “pays no interest” because it doesn’t need to pay a yield. It is already a perfect tool of wealth preservation. Conversely, the bankers’ paper currencies must pay a yield, as partial compensation for the relentless erosion of wealth, from the inflation caused by the money-printing of these very, same bankers.

However, as the saying goes, that was then and this is now. In 2016; the bankers’ paper currencies no longer pay any interest. Indeed, in the Wonderland Matrix, we now have “negative interest rates”: bankers stealing money from accounts at a fixed rate, in addition to the rate of (banker-created) inflation which is already devouring that wealth.

But this isn’t enough for the bankers. They have also declared “a War on Cash”. What the bankers want to do is to force us to deposit all of our wealth into their banks, denominated in their own, ever-depreciating paper currencies, and then confiscate (steal) all of that wealth via their twin tools-of-theft: inflation and ‘negative interest rates’.

In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.

- Alan Greenspan (1966)

However, when Sir Alan Greenspan was explaining to us how bankers (like himself) would/could steal via inflation fifty years ago, even he could not conceive of a rapacious, fascist world such as this. Not only are we deprived of a gold standard to protect us from the serial, financial crime known as inflation, we have additional coercive and illegitimate tools (banning cash and ‘negative interest rates’) being used to dramatically ratchet-up this rate of wealth “confiscation” (i.e. theft).

That is the world of paper, in 2016. Then we have the world of gold, a world where, supposedly “gold generates no income.” Yet, in 2016, while the holders of the bankers’ paper currencies can no longer obtain any interest on that paper, we now see offers to the holders of gold to pay interest on that gold.

This new phenomenon in the Wonderland Matrix started in no less a land than India, repository of the world’s largest quantities of privately held gold, an estimated 20,000 tonnes or more. And, apparently, the people of India could be paid interest on that entire, 20,000-tonne collective hoard. All they had to do is to “deposit” it into the hands of their own, trusted government – and then just wait for the “interest” to start rolling in.

Now, as just reported at Zero Hedge, the opportunity for gold-holders to be paid interest on their gold has come to North America:

Where India succeeded was to finally quash the old saying that gold does not pay dividends. It does, but until now the dividend was only available in one country.

That has now changed and as of this moment, a Canadian physical gold distributor, Canadian Bullion Services (profiled recently by the Globe and Mail) has boldly gone where only India has gone before, and is offering to pay interest to its gold and silver customers if they hold their precious metals at the bullion dealer. [emphasis mine]

Wow! Now gold and silver holders can be paid interest on their metal, but only in Canada, eh? At least, this is the situation today. But just like the bankers’ “negative interest rates” are spreading (like a virus), apparently so, too, are the opportunities for precious metals holders to be paid interest on their metal.

It should be further noted that the rate of interest being offered to Canadian holders of gold and silver is not some token or microscopic amount. Zero Hedge continues:

In fact, based on the tiering of interest, CBS will pay as much as 4.5%/year if the gold is deposited for at least three years. [emphasis mine]

Do you remember when the bankers used to pay rates of interest like that on their paper currencies? Do you remember when they, and our governments, used to tell the truth about the rate of inflation? (Younger readers can ignore those questions.)

Let’s review this scenario, one more time. Pre-Wonderland Matrix; the holders of paper currencies were paid interest on those holdings, when deposited. Meanwhile, not only were the holders of gold and silver denied any interest, but banks assessed “storage fees” (i.e. negative interest rates) on any gold and silver deposits.

However, in the era of the Wonderland Matrix, “the New Normal”, all this has reversed. Now, it is the holders of gold and silver who are paid interest. Conversely, not only are the holders of the bankers’ paper currencies denied interest, but the bankers are assessing storage fees (negative interest rates) on those holdings.

Gold and silver (officially) pays interest. It is the bankers’ paper currency which now “generates no income”, indeed depositors may be assessed additional storage fees on this depreciating paper. This begs an obvious question.

Why aren’t the bankers now shouting from the roof-tops that we should all abandon these (costly) depreciating paper currencies, in favor of the eternal security of gold and silver + interest?