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Is It Time To Move Wealth Outside Of The Financial System?

We are experiencing an unusual phenomenon in the financial world at present, that being negative interest rates. Professors in economics and finance were teaching students as late as 2007 that the absolute bottom for interest rates would be 0%. Yet at the height of the 2008 financial crisis, interest rates on 1-month T-bills fell below 0% for the first time in history. Now, negative interest rates are becoming more common. The extreme case as of the time of this writing is the 10-year Swiss bond, which peaked at -0.28%. Some bond investors are comfortable with these negative rates because they feel interest rates will go even lower, enabling them to sell the bonds at a higher price. However, an average investor seeking no risk is unlikely to accept a bond with a negative interest rate. With safe haven investment now costing the investor, options outside the conventional financial system become… Read More …