by Chris Powell, GATA:
Dear Friend of GATA and Gold:
Commentary about gold suffers from a few disastrously false but enduring premises.
One, perpetrated famously two years ago by Federal Reserve Chairman Ben Bernanke, is that central banks hold gold not because it’s money but because it is just an “asset” and “tradition”:
Bernanke must dearly wish that it were so. But the Bank for International Settlements confirms otherwise, that gold is “a financial instrument”:
Another disastrously false premise is that gold doesn’t pay interest. But gold pays interest just as money does — when it is lent.
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