Who Says Gold Doesn’t Earn Interest?
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Gold aficionados have for many years contended with the plaints about the metal's sterility. "Gold doesn't earn interest" is a constant refrain heard from nonowners.
But that's not necessarily true. Gold can offer a money market return regardless of its price trajectory. Spreads between gold futures' delivery months, in fact, implicitly reflect short-term rate expectations. The gold market, through cash-and-carry operations, tells us what traders think short-term rates ought to be.
Read the full article: http://www.greenfaucet.com/technical-analysis/who-says-gold-...
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