• Gold Money
    05/26/2016 - 14:27
    Here’s a question that might have you pondering: Is gold a commodity? More importantly, are we doing a disservice to the gold industry by calling gold a commodity? These may sound like silly...

In Odd Twist, Canadian Bullion Dealer Offers To Pay Interest On Gold And Silver

Tyler Durden's picture


There are three certain things in life: death, taxes and paying vault storage fees to keep your gold safe. Or at least there were: recently the third of these certainties got somewhat muddied when, over the past year the government of India unleashed an attempt to soft-confiscate the nation's publicly held gold, by offering to pay interest for said gold. Incidentally, the effort has failed miserably as India has been able to collect only a few tons of gold as part of this gold monetization scheme.

Where India succeeded was to finally quash the old saying that gold does not pay dividends. It does, but until now the dividend was only available in one country.

That has now changed and as of this moment, a Canadian physical gold distributor, Canadian Bullion Services (profiled recently by the Globe and Mail) has boldly gone where only India has gone before, and is offering to pay interest to its gold and silver customers if they hold their precious metals at the bullion dealer.  In fact, based on the tiering of interest, CBS will pay as much as 4.5%/year if the gold deposited for at least 3 years.

Surprised? Wait until you see the full offer:

Earn Interest on Your Bullion




Canadian Bullion Services is happy to introduce a new service exclusively to our clients. Purchase gold and silver and hold gold and silver in secure storage; and earn interest just by keeping gold and silver in the Boost storage account.


What is The Boost Storage Account?


The Boost Storage Account is a proprietary program developed exclusively by Canadian Bullion Services.  In a nutshell, the program allows investors to:

  • Purchase gold and silver;
  • Hold gold and silver in secure storage; and
  • Earn interest just by keeping gold and silver in the Boost storage account.

Is this a new idea?


We would like to say we thought of it ourselves, but the idea is very popular in the Eastern parts of the world, where governments, banks, and bullion dealers have a variety of storage interest bearing accounts for their hard assets.


Benefits at a glance:

  1. Purchase physical gold and silver for safety and growth.
  2. Have your gold and silver secure in a vault.
  3. Earn interest while your gold and silver is safely in storage.
  4. Get full transparency - receive monthly audited statements.

The Program is right for you if:

  • You desire the safety of hard assets like bullion but want your bullion working for you;
  • You wish to participate in the potential growth of the bullion markets (hard assets only, no paper assets);
  • You would like to receive interest payments while storing your gold and silver;
  • You believe in a buy-and-hold strategy; and
  • You want your bullion stored safely and securely.

How does the Boost Program work?

  • Purchase a minimum of 500 ounces of silver or 10 ounces of gold (does not matter which Mint)***
  • Store the gold and silver at one of Canadian Bullion Services secure depository vaults.
  • The Boost accounts are yearly accounts. Interest earned is based on holding time:
    • Store your bullion for 1 year and earn 2.5%/annum on your bullion*
    • Store your bullion for 2 years and earn 3.5%/annum on your bullion*
    • Store your bullion for 3 years and earn 4.5%/annum on your bullion*
  • At the end of the term you can renew your Boost Program or have your bullion delivered**
  • Your interest is earned monthly with actual physical bullion.

Getting interest on your gold: that sounds suspiciously close to what fractional reserve banks do to incentivize depositors to fund them with the unsecured liability known as cash; a liability which as Europe is learning the hard way can be bailed in at any given moment. But that is impossible, because as Ben Bernanke will attest, gold is not money, it is tradition. So how can this be?

Well, a quick look at footnote one, and some loud alarm bells should promptly go off:

*Liquidity is at the end of your term only; you may not receive the exact bullion you purchased; the interest will accrue monthly with the purchase of more bullion, any funds remaining will be credited as cash in your account.

At least the company is honest and warns you upfront that the gold you "receive" may not be the exact bullion you purchased, in other words this is nothing but the first incarnation of a bullion dealer rehypothecation scheme.

But why? After all Canadian Bullion Services is a small dealer which allegedly only had a few million in revenue.

Perhaps the answer can be found in the following recent press release, in which CBS announced it was now collaboration with precious metal vaulting legend, Brinks.

Introducing Local Pick Up at Brinks-Revolutionary Service for Gold and Silver


Canadian Bullion Services Inc. has now introduced its leading on-time pick up option at Brinks in Toronto.


“With this new feature, clients can secure their price of gold and silver bullion and now pick up their order at Brinks in Toronto.” said Jamie Cohen, Chief Strategy Officer of Canadian Bullion Services.


This new service was created to help individuals accelerate their precious metals holdings. Clients will no longer need to wait for their deliveries. This helps drive more business value for Canadian Bullion Services by lowering insurance costs and delivery costs while enabling clients to receive their product faster.


* * *


In the future, this service will be rolled out to all products and to Brinks in most major cities in Canada. For more information, please contact Jamie Cohen at Canadian Bullion Services.

We wonder if CBS' generous precious metal interest payment scheme is funded by Brinks or one of the other prominent names in the business such as Scotia Mocatta, HSBC or even JPM, all of which as we have documented in recent months, have been running precariously low on physical gold in their gold vaults.

After all what better way to promptly replenish physical stores than to not only not demand gold storage fees but to offer to pay interest to the public for the "privilege" of holding its gold.

In retrospect we can't help but have flashbacks to FDR's infamous executive order 6102, which promptly and overnight confiscated all physical U.S. gold.  At least this time around the "confiscation" of gold is on a voluntary, "handover" basis and those who part with their hard money are incentivized to do so with promises of some future paper money interest payment.

At least for now.

And if, like in India, dealers are unable to procure much needed physical, things just might escalate. Unless of course, there is nothing ulterior or sinister about this scheme, in which case those who are interested should call 416 214 4299 for further details.

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Tue, 02/23/2016 - 21:24 | 7226856 JLee2027
JLee2027's picture

Hey! Pull my finger....

Tue, 02/23/2016 - 21:26 | 7226864 JLee2027
JLee2027's picture

(pulls finger)

Tue, 02/23/2016 - 21:26 | 7226871 JLee2027
JLee2027's picture

Gold and Silver disappear.

Tue, 02/23/2016 - 21:28 | 7226889 Supernova Born
Supernova Born's picture

I immediately pictured a lovely gingerbread house deep in the woods.

Tue, 02/23/2016 - 21:30 | 7226903 Father Thyme
Father Thyme's picture

Something about eating grandma?

Tue, 02/23/2016 - 21:34 | 7226923 WTFRLY
WTFRLY's picture

Now comes the desperation phase of purgatory

Tue, 02/23/2016 - 22:06 | 7227111 tmosley
tmosley's picture

How stupid do they think we are?

Oh, Mister Bullion Dealer is going to give me money to keep my money in his safe, and won't return the exact same money, while paying me interest?But he says it will stay in the safe all the time?

Fucking shit. Obvious ponzi scheme. They should be arrested and shut down, and possibly publically executed.

Tue, 02/23/2016 - 22:15 | 7227155 RafterManFMJ
RafterManFMJ's picture

(deep breath)


Tue, 02/23/2016 - 22:19 | 7227179 CheapBastard
CheapBastard's picture


The Trumpster is already driving the MSM, the far left, the far right, banksters and the MIC crazy.

Now this!

Interest on gold?!

What's next?

Before long you'll be telling me the sweet new socialist Canadian leader is gay!


Justin Trudeau: Canada leader to march in Toronto gay pride
Tue, 02/23/2016 - 22:28 | 7227237 remain calm
remain calm's picture

News like this gives me a warm tingly feeling down my leg, now I know how Chris Mathews felt. 

Tue, 02/23/2016 - 22:39 | 7227296 Four chan
Four chan's picture

who the fuck among the masses has either gold or silver? there's going to be a new 1% one day and they will all have zh memberships.

Tue, 02/23/2016 - 22:49 | 7227349 Bunghole
Bunghole's picture

This reeks of bagels

Tue, 02/23/2016 - 23:18 | 7227450 CapnJackDaniel
CapnJackDaniel's picture

the story or your profile pic?

Tue, 02/23/2016 - 23:46 | 7227549 Pool Shark
Pool Shark's picture



I would like to propose a similar scheme:


I will volunteer to hold your gold safely in a vault deep beneath the surface of a nearby lake. I guarantee your holdings will grow as occasional 'tragic boating accidents' add to your holdings...


Wed, 02/24/2016 - 00:58 | 7227701 Pinto Currency
Pinto Currency's picture



They should explain that they're planning to sell each ounce 10x and will give you a cut of the profit.

And because you're special, you'll be one of the 10% who get their gold back.

Or you may be one of the 100% who get 10% of their gold back.  TBD.

Wed, 02/24/2016 - 01:21 | 7227750 Pinto Currency
Pinto Currency's picture



In a deflationary price environment, money buys more goods.

Gold and silver have a 4,000 year history as money.

Even Greenspan says that gold is a "premier" currency and that no fiat currency (even the USD) can match it.


A deflationary price environment is the time for gold and silver.


Wed, 02/24/2016 - 01:26 | 7227783 stacking12321
stacking12321's picture

you guys are bashing this canadian bullion dealer undeservedly, they are being very honest, they even say BOOST right there in the description to let you know your stash is being boosted.

Wed, 02/24/2016 - 03:23 | 7228058 Squid-puppets a...
Squid-puppets a-go-go's picture

"the gold you "receive" may not be the exact bullion you purchased"

how'd that work out for Germany?

Wed, 02/24/2016 - 09:41 | 7228573 mtl4
mtl4's picture

All ponzi schemes certainly start out innocently enough........what could go wrong?!

Wed, 02/24/2016 - 04:15 | 7228114 RockySpears
RockySpears's picture

"Boosted"?  Does that term not also get employed in the Auto industry?

Wed, 02/24/2016 - 02:06 | 7227891 PT
PT's picture

Somewhere there is a quant who is measuring the flow of gold and paper and the speed at which these schemes are announced and the speed at which suckers enter the system, and this particular quant will be able to tell you exactly when the number of ideas and suckers entering the system is less than the extra physical flow that is actually needed, and thus the date (barring any extraneous factors) of the collapse.

Wed, 02/24/2016 - 01:59 | 7227873 Cistercian
Cistercian's picture

I think gold is overvalued.I think silver is a reasonable place to stash your cash.But one never knows how duplicitous
TPTB can be and what manipulation they are capable of.That being said silver seems cheap...and gold too expensive.

But betting on the matrix to continue the scam is safe...until infighting/FAIL makes the whole house of cards collapse...then the doom is truly apparent...and it is too late.

Then it sucks to be you.

Wed, 02/24/2016 - 03:29 | 7228066 jaxville
jaxville's picture

  I am in precious metals because we are going into deflation. 

Wed, 02/24/2016 - 04:39 | 7228139 quadraspleen
quadraspleen's picture

Your blog lost me at the word sinner


And the crosses.


This is no time for notional deities and bullshit fairy tales

Wed, 02/24/2016 - 07:39 | 7228258 Bendromeda Strain
Bendromeda Strain's picture

<Points and laughs> Not only are you wrong (according to Tacitus and Josephus), but nobody has been suckered into visiting that spam site in ages. Congrats.

Tue, 02/23/2016 - 23:21 | 7227459 Save_America1st
Save_America1st's picture

is Brinks or any other non-bank vault service trustworthy to hold phyzz???  Just askin', cuz I have no i-freakin'-dea

Wed, 02/24/2016 - 00:31 | 7227666 Son of Loki
Son of Loki's picture

I don't know about Brinks but I read APMEX and the Perth Mint have programs where they'll store your metals for you.






Seems like there's money to be made storing the stuff by some of these solid companies that have been around for awhile.

Wed, 02/24/2016 - 02:36 | 7227969 stacking12321
stacking12321's picture

there's lots of places doing it

yeah apmex has citadel, i have some silver there, it's ok and then will ship it to you on request, ampex is great but citadel i'm not thrilled with, they're honest, just a bit annoying to deal with.

provident metals has the elemetal vault program

hard assets alliance has smart metals

there's bitgold / goldmoney which is highly respected

matterhorn asset management / egon von greyerz


goldsilver.com / mike maloney has their own vaulting program

i was just at anarchapulco which was sponsored by swiss metal asset, they look promising and i'm looking into them: smhpa.com , they do strategic metals (rare earth metals) and also silver

there are probably a bunch of others i've missed, the ones i mentioned above are reliable and respected to the best of my knowledge.

Wed, 02/24/2016 - 18:55 | 7231495 N3M3SIS
N3M3SIS's picture

Birds of a feather flock together...  Best view of the sunset over the bay was from the 23rd floor ;)


Thu, 02/25/2016 - 13:34 | 7234833 stacking12321
stacking12321's picture

NOW you tell me!



Wed, 02/24/2016 - 06:50 | 7228227 3Wishes
3Wishes's picture

Trump is a GoldBug

Wed, 02/24/2016 - 10:41 | 7228937 Site
Site's picture

Nah what mathews was feeling was the first wood he had experienced in 20 years

Tue, 02/23/2016 - 22:38 | 7227281 Bananamerican
Bananamerican's picture

please contact Jamie Cohen:

ya meshugenah freiers
Wed, 02/24/2016 - 10:10 | 7228729 Reichstag Fire Dept.
Reichstag Fire Dept.'s picture

Well...Cdn PM Justin Trudeau IS a Drama Teacher! LOL ...I mean, it's a fact but still...LOL!

Tue, 02/23/2016 - 22:22 | 7227188 ebworthen
ebworthen's picture

Exactly.  "Send us your PM's and we'll take care of them and pay you!"  *cough* 

Yeah sure, up until they are at the value of what they paid you in interest then "poof!"  Ooops, can't seem to find your physical, so sorry, did you read the fine print?"

Tue, 02/23/2016 - 22:30 | 7227249 lincolnsteffens
lincolnsteffens's picture

I would gladly pay you tomorrow for a hamburger today.

Tue, 02/23/2016 - 22:48 | 7227334 Four chan
Four chan's picture

the old ridgewood oil scam with metal. 


give us your cash and will give you interest, or as we like to call them, pitances. 

Wed, 02/24/2016 - 01:27 | 7227785 Nobody For President
Nobody For President's picture

The historically correct quote from Whimpy is:
"I will gladly pay you next Tuesday for a hamburger today."
We have to keep these historical economic quotes correct...

Wed, 02/24/2016 - 07:49 | 7228276 onthesquare
onthesquare's picture


"I will gladly pay you Tuesday for a hamburger today."

this is the correct quote and it is quite different without the 'next' in it.


Wed, 02/24/2016 - 08:53 | 7228439 smokintoad
smokintoad's picture

<---  Tuesday  March 1   2016

<---  Tuesday  March 1   2061

Tue, 02/23/2016 - 23:23 | 7227468 Innominate
Innominate's picture

You know, that's the exact same thing that they do with fiat ticket money.

Wed, 02/24/2016 - 05:59 | 7228195 Curiously_Crazy
Curiously_Crazy's picture

Which the article itself points out :P

Wed, 02/24/2016 - 07:35 | 7228252 Bendromeda Strain
Bendromeda Strain's picture

How stupid do they think we are?

Are you kidding me? It's the "sophisticated" investors that will get snared in this scam. I wouldn't be at all surprised if brokers were not incentivised (how about some nice replica cufflinks?) to recommend this to their diversified clients.

Tue, 02/23/2016 - 22:12 | 7227135 SuperRay
SuperRay's picture

I think you have the wrong number there, Tylers. The correct number is 1-800-FUCKYOU.

Wed, 02/24/2016 - 00:05 | 7227605 Tall Tom
Tall Tom's picture




Then when they give you that number you call 1-800-GET-EVEN.


For a small fee the people over at the M.A.F.I.A. will do your collecting work.


No worries. No concerns.


Don't get mad. Get even.


Tue, 02/23/2016 - 22:28 | 7227235 lincolnsteffens
lincolnsteffens's picture

The only way they can pay interest is if they loan out your gold for a fee!!! Otherwise the gold does nothing sitting there.

Oh dear, I'm sorry. We loaned out your gold to ......(fill in the blank) and we are unable to get it back!

Wed, 02/24/2016 - 01:33 | 7227804 Kirk2NCC1701
Kirk2NCC1701's picture

They're obviously borrowing the Bullion, to improve the ratio of Paper Gold vs. Bullion Gold.

Someone is running a derivatives bet somewhere else, and paying for the bullion rental.  Have Tyler explain it to you.

Wed, 02/24/2016 - 01:59 | 7227867 PT
PT's picture

Hold it.  I think I can run with this:

Can I borrow money at negative interest rates so I can buy gold and then deposit that gold and earn interest?  How much do I have to borrow to get the negative rates?

Oh hang on, for that to work I would have to be able to TRUST!!!!!!!! the counter-party.  Eventually "credibility" starts appearing to be sort of important.

Wed, 02/24/2016 - 00:17 | 7227636 rabbitusvomitus
rabbitusvomitus's picture

Ahhh!  This is just your "local" equivalent of silver or gold contract. Just Don't try and "stand for delivery ", it may not be there!



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