Thatcher, Gold & the Freedom to Save

Summary: This week’s headlines have been dominated by the tragic death of former-British Prime Minister Margaret Thatcher. Besides the “Iron Lady’s” more commonly known attributes, Thatcher also lifted restrictions on private gold ownership during her tenure (1979). At the time, cash interest rates were at an abysmal negative 3.05%. By 1990, this rate peaked at just over 8%!! So while Brits could buy gold once again, it wasn’t really necessary for many since interest rates on cash savings were increasing from their historic lows. A similar situation (low interest rates) has been ongoing since 2008. Cash savers have been punished through low-interest rates, easy credit and monetary expansion, which is one of the reasons gold has done extremely well in the last few years. Read more…