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Monetary Experiment Creating Mother Of All Crises: “Negative Rates Phenomenally Good for Gold and Silver”

by Mac Slavo, SHTFPlan:

It is the silver and gold lining of the dismal and imploding economy.

The longer that central banks force negative interest rates – and wipe out the value of savings, pensions, and insurance accounts by denying them return on investment – the more attractive gold and other commodities become as a safe haven for maintaining flexibility.

Moreover, the closer the system comes to unraveling altogether, gold and silver remain attractive as a means of holding onto money with ready, liquid exchange value.

If hyperinflation were to make the dollar virtually worthless overnight, or if cash controls were imposed to limit people to a paltry daily allowance from ATMs and prevent bank runs, physical commodities can still be used.

Financial analyst John Rubino, of DollarCollapse.com discusses the importance of physical holdings in this interview with Greg Hunter of USAWatchdog.com:

via Greg Hunter:

John Rubino, who was a former Wall Street analyst, says negative interest rates will be good for gold and silver. Rubino explains, “It used to be that if you were going to buy gold and store it in a vault, you would have to pay maybe 1% a year. You wouldn’t generate any cash flow from it. Meanwhile, a portfolio of Treasury bonds might yield you 6% a year. So, there was a big gap in cash flow between financial assets and real assets. That’s gone now in a world of negative interest rates. It actually costs you money to own Japanese or German bonds, whereas gold is still what it always was. It sits there and retains its value while your bond portfolio actually loses value. You pay rather than receive interest.

Read More @ SHTFPlan.com

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