Gold is now high yield! (versus Euros)
One of the strongest historical arguments against gold has been that it doesn’t offer a yield.
To counter that, gold bugs have pointed to the lack of counterparty risk (depends on how the gold is stored, of course) and to its inflation protection.
But now, at least when it comes to Euros, the yield argument no longer works. Depending on who you bank with, gold can offer a much higher yield – even after storage costs – compared to the EU’s currency!
This is the context in which I received the following email from BullionVault (with whom I have no relationship except being a former customer):
BullionVault’s bank might be borrowing from the ECB at minus 1% – and deposits from its customers at 0% might have started to look too expensive!
BullionVault’s gold storage service, which is something I have used myself in the past, costs 0.12% per year (including insurance). Therefore even after insurance costs, gold storage is six times cheaper than some Euro deposit accounts!
I’ll be a gold bug for as long as these strange times continue…