Dear David, At a meeting with my banker last week he informed me that his bank has to pay 0.4% on all cash that customers hold at his bank. He said that the directors of the bank are thinking about charging customers for holding cash on their accounts.

David Fuller's view

Thanks for mentioning this and many more savers will be in this position, as you know.

Central banks are trying to persuade (force) savers to either spend or invest surplus capital in current and also deposit accounts.  Bond yields in developed economies are dangerously low.  Stock markets are not cheap but they have certainly benefitted from exceptionally low interest rates and remain a somewhat volatile haven.  Precious metals have outperformed this year and should extend their upward trends, provided the US Dollar does not surge the upside anytime soon.  

See also my leading article posted on Tuesday.