PRECIOUS METALS BETTER INVESTMENTS: Uncle Sam Cuts Interest Payments To Bondholders

At some point, Americans are going to have to wake up.  With the Fed funds rate set at 0.25, Americans can no longer earn any interest with their money in the bank.  I just checked the average interest rates paid on a five-year CD is a whopping 0.36% while a Money Market Account pays a hefty 0.11%.  Talk about what a losing game that is when the real inflation is running at 7-13% per year.

So, if money, or let’s correctly use the term “currency,” is a losing proposition, then why aren’t more Americans acquiring precious metals?  Well, actually a few are, but in paper form.  There has been a record movement of funds into the Gold and Silver ETFs over the past several months.  However, that really isn’t a safe investment as it’s hard to know if the custodians of the ETFs hold all the metal they say, or if it is over-subscribed.

According to, there is supposedly 42 million oz (Moz) of gold held in the vaults backing the GLD ETF and 566 Moz in the SLV ETF.  Again, no one knows for sure how much of the metal is stored in the GLD & SLV inventories.  Worse yet, some metal may have more than one owner.

NEW  MEMBER ARTICLE… Released Tomorrow:  Where Will Most Of The Future Silver Millionaires Come From?

Regardless, if we look at the following chart, Americans need to start waking up.  With the U.S. Debt now $4.5 trillion higher than it was a year ago, the interest expense Uncle Sam paid to Bond Holders is $61 billion less.  That’s correct.  Even though the U.S. public debt has ballooned to $26.5 trillion (July 31st, 2020) versus $22.0 trillion (July 31st, 2019), Uncle Sam only paid $436 million in interest expense in the first ten months of the fiscal year (Oct-July).

I did a quick calculation of the average interest rate for each based on the first ten months of the year.

Oct-July 2019 Average Interest Rate = 0.0226 (2.26%)

Oct-July 2020 Average Interest Rate = 0.0164 (1.64%)

While the average Bond Holder interest rate is now earning less than the typical Certificate of Deposit, the shorter-term Treasury Bills are paying even less.  Someone holding a 1-Year Treasury Bill makes 0.011 while a 30-Year Bonder holder gets 1.50.  With the real inflation rate running at 7-13%, earning 1.5% over 30 years is a losing proposition.

I was quite surprised to see the U.S. Interest Expense only $436 million for Oct-July versus $497 for the same period last year.  With the U.S. Government increasing the public debt by $23 billion a day since the beginning of 2020, it’s no surprise that the Fed has to push interest rates even lower.

If we look at the total Global Gold and Silver investment holdings, they aren’t that much compared to all the Stocks, Bonds, and Real Estate in the world.

Just another $5 trillion moving into gold would double its current price of $1,930 to nearly $4,000.  And if only one-tenth of that went into silver ($500 billion), it would increase the current $27 market price seven times to $189.  That would be a Gold-Silver Ratio of 21/1, not to out of the question when the world begins to head over the ENERGY CLIFF.

Again, please check out the newest Silver & Gold Member article to come out tomorrow, Where Will Most Of The Future Silver Millionaires Come From?

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9 Comments on "PRECIOUS METALS BETTER INVESTMENTS: Uncle Sam Cuts Interest Payments To Bondholders"

  1. SRS ROCCO REPORT: “If we look at the total Global Gold and Silver investment holdings, they aren’t that much compared to all the Stocks, Bonds, and Real Estate in the world.”

    How much is there in each of Stocks, Bonds and Real Estate in the world? (Exter’s Pyramid?)

    • gno,

      As of the end of 2017, there were $470 trillion Global Assets. Gold and silver investment made up $4 trillion. The rest was Stocks, Bonds, & Real Estate.


  2. On some crypto exchanges your deposited crypto can run 1 – 57 % interest depending on the coin and length of term. The USDT coin runs 49% for 30 day term with a minimum of $1,000 deposit.

  3. Steve,
    one of your best. Appreciate the clarity with your reply to the comment about world assets. I have looked that up before but it seems there are so many varying opinions and some may just be older.

  4. Not that I know what I’m doing with these numbers, but $500 billion divided by 2.637 billion ounces above ground silver equals $189 per ounce. But is all of that silver available and for sale? If not, do you know how much is, approximately?

  5. TruthisYourRight | August 29, 2020 at 9:11 am |

    Silver is money, a fact that can be found in any dictionary!

    But many channels on YouTube and websites function like little boxes; closed environments detached from reality. This is so that people go further and further from what matters.

    Fiat collapse is imminent and a chosen people,(illegal to name) stand to lose their fiat fraud and financial system.

    Now is the time to tell others about it. Don’t be a Judas Iscariot, but preserve your Christian family and other families of the world.

    Reference; Tell the Truth and Shame the Devil by Gerard Menuhin.
    (Corona is part of this deception)

  6. TruthisYourRight | August 31, 2020 at 7:22 am |

    People believe that the world is made up from beliefs and opinions, but it is not. It is made up from one truth that pervades all things and is the property of all people.
    A Chosen People have found profit in making people believe and have an opinion. Thus, their media and governments through their control of the money supply can conveniently supply the opinions and beliefs.
    It was the intention of Christianity to describe this difference to the people, and to make reference to the criminal intentions of the chosen people
    The Lord God of Israel, when translated through the allegory means, the Leader State of the Chosen People. So, in effect the Knesset and Israel lead all the other States through their fiat fraud and Central Banks.
    Now, is the time to tell other people about this, and the imminent collapse of their fiat. Don’t be a Judas Iscariot, but preserve your Christian family and other families of the world.
    Ref; Tell the Truth and Shame the Devil written by Gerard Menuhin.
    (Corona is part of their deception)

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