Is the situation not weird enough, with negative interest rates? Now the offer to pay interest on gold holdings is gaining traction? The only way to pay interest is to lend it out, if it is lent out, it is gone, so the internal contradiction is to claim it is safe but necessarily lent out at the same time.
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Getting interest on your gold: that sounds suspiciously close to what fractional reserve banks do to incentivize depositors to fund them with the unsecured liability known as cash; a liability which as Europe is learning the hard way can be bailed in at any given moment. But that is impossible, because as Ben Bernanke will attest, gold is not money, it is tradition. So how can this be?Read the article for the rundown on this odd development. What other upside down phenomena are heading our way?
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