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7 Misconceptions About the Gold Market You Need to Know

Understand the investment before deciding to invest

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2) Gold Doesn’t Offer Interest

These days, bank cash typically earns about 0.25%. The Fed’s target rate for short-term interest rates is (and will be) 0% to 0.25% for the foreseeable future. If you want to go out a little longer on the maturity curve, the two-year Treasury note currently returns a microscopic 0.3%. The euro also earns just 0.25%. This is gold’s major competition. Since gold earns only slightly less than bank CDs or short-term Treasury bills, that puts gold darn close to an “even playing field” with cash.

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