If you don’t want to store your gold and silver bullion in your own home in a safe then you have to pay a monthly fee to your financial institution to store it in a vault. It’s costly and hurts the value of your holdings. Well, there may be an alternative for those in Canada.
Canadian Bullion Services (CBS), a Canadian physical gold distributor, was recently profiled by the Globe and Mail because of a new service: offering to pay its customers interest if they hold their precious metals at the bullion dealer.
The company will pay between 2.5 and 4.5 percent per year if your precious metals are deposited at the dealer for one to three years. Your interest is earned every month with physical bullion.
If it sounds too good to be true then it probably is. The company has a little footnote in its announcement:
“Liquidity is at the end of your term only; you may not receive the exact bullion you purchased; the interest will accrue monthly with the purchase of more bullion, any funds remaining will be credited as cash in your account.”
In other words, the gold you give may not be the gold you purchased.
CBS is also partnering with vaulting juggernaut Brinks.
Some are already petrified that this would be a great way for the state to take away your gold. ZeroHedge opines:
“In retrospect we can’t help but have flashbacks to FDR’s infamous executive order 6102, which promptly and overnight confiscated all physical U.S. gold. At least this time around the ‘confiscation’ of gold is on a voluntary, ‘handover’ basis and those who part with their hard money are incentivized to do so with promises of some future paper money interest payment.”
India recently tried this program by offering interest for stored gold. But critics and citizens believed it was a way to confiscate the people’s gold. Indians aren’t stupid: only a few tons of gold have been deposited.
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