BoE steals £36.45bn from UK savers: cash vrs gold
According to an article published in This is Money UK savers have seen the purchasing power of their savings diminish by £36bn in over the past year.
Currently UK savers have £1tn held at UK banks paying on average a pitiful 1.6%. Which means that UK savers have ‘earned’ £15.75bn in interest payments. This means that even when taking into account the earned interest, UK savers are worse off to the tune of £29.42bn when measured by CPI inflation (4.5%) and £36bn when using the RPI measure (5.2%).
With the now self-admitted thoroughly discredited BoE keeping rates at a record 0.5% this week and forecasting inflation remaining above their government mandated target of 2% at least until q2 2013 it seems that UK savers are to suffer the theft of their savings.
But what would have happened to UK savers if instead of leaving it in the banks to earn negative rates of interest and instead had it parked in gold?
(click for sharper image)
That’s a 24% better performance since April 2010. So savers do have a choice – just not one through the banks.
Related posts:
- UK Gold Cash Machines
- Cash for Gold Companies Made to Clean Up Their Act
- GoldNomics – Cash or Gold Bullion?
Link to this article: : http://www.goldmadesimplenews.com/gold/boe-steals-36-45bn-from-uk-savers-cash-vrs-gold-4237/
Posted by Thomas Paterson on Jun 17 2011. Filed under Analysis, Gold News.
You can follow any responses to this entry through the RSS 2.0.
You can leave a response or trackback to this entry
