The largest bank in Switzerland has recently announced that starting this summer, the owner of an account holding more than CHF250,000 will have to pay interest on the money kept on this bank account.
How did we arrive at being asked to pay interest on our own money?
For over two years now, pressured by the negative interest rates, banks have kept lowering the funds level above which account holders should start paying to keep their money in the bank.
If things keep moving at this rate, it’s not hard to imagine that the current level might be lowered again to apply to even more accounts.
And after that? Why not to all bank accounts, no matter how much money they hold?
With that in mind, those looking for a store of wealth with no risk of paying interest might see why gold or Crypto could be a clear winner for them.
And this is how, in the shadow, negative interest rates have been fueling demand for precious metals.