Two European Banks Have Announced Imposing Negative Interest Rates -- Could the U.S. be Next?

5:50 AM


July 27, 2016 -- Markets were quiet again yesterday as investors were awaiting today's Federal Reserve meeting announcement. US stock indices finished nearly unchanged along with bonds and precious metals.

Two major European banks, under pressure in the face of negative interest rate policy, announced they are preparing to impose negative interest rates on their depositors. In other words, savers will be required to pay interest TO THE BANK rather than the other way around.

Negative rates for depositors may stimulate demand for precious metals. Historically speaking, gold and silver was at a disadvantage to holding savings in cash -- as banks paid actual interest on cash deposits. Now, gold and silver enjoy a relative advantage -- a 0% is higher than a negative yield!

Interest rates here in the U.S. remain in positive territory, but Fed Chair Janet Yellen has hinted at the possibility of negative interest rates.

Live prices at MoneyMetals.com show gold currently trading at $1,325.00 per ounce on the global market, and silver is coming in at $19.75.

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