In its Sunday edition it published an article under the signature of one Jonathan F rbringer. Apart from its patronizing title A Stirring in the Long Suffering Gold Market, the article tries to be objective in explaining the technicalities of gold leasing. This is a lie. Gold commands a rate of interest lower than that payable on paper money loans because you know exactly what will be returned to you. The only thing certain about a paper money load is that it will be retired in depreciated units.
Paper is open to all sorts of destruction.
You can protect it against fire, water, and theft, but there is absolutely no protection against the deterioration of good faith behind it. The only thing creditors can do is to demand a depreciation premium to compensate for that loss. There is no depreciation premium for gold loans. One ounce of gold will always be one ounce of gold. Gold does not shrink.