Your Savings Account isn’t All That Safe: Why Gold Offers a Better Alternative to Savings Accounts
When it comes to saving, there’s no dearth of saving and investment options available to individuals. But everyone has the right to decide which option best suits their requirements.
With almost 47% of Baby Boomers facing the retirement crisis, there are approximately 34 million retired citizens looking for a reliable way of securing their savings.
Under-their-mattress savings have long been the last resort for individuals who don’t want to entrust savings accounts with their life-time savings.
In light of what economist, Alex Tabarrok, calls a distrust trap, there’s a growing concern to find better alternatives to savings accounts. Here’s why gold investment promises brighter prospects to investors.
The Changing Money: Gold
The lack of confidence in the state’s investment infrastructure has led to the meltdown of the financial system. There’s an overpowering fear that the future will be worse than the present and hence all money and sustenance must be kept ready on-hand.
At the horizon of the evolution of money psychology is gold as a major beneficiary. The World Gold Council has reported that the demand for investment in gold bullion coins is reaching an all-time high. Since gold is a universal currency that’s accepted by central banks globally, it’s valued high across all markets.
Individuals have found a useful way of protecting themselves and their savings in the form of gold investments. It’s easier to buy gold bullions or bars at the current market value and sell them a few years down the lane at a higher rate. It’s quite possible to make significant profits just by buying and selling gold.
Saving the Old-School Way
Saving in the traditional Savings Account has been the go-to option for many seniors. Even though it doesn’t offer returns as gold does, this option is certainly stable and predictable. Thus, it doesn’t pose the risk of volatility and hence doesn’t air the fear of losing all the money at once.
Despite the security that bank-deposited savings offer, it doesn’t prevent your wealth from devaluing in case the currency depreciates. Even though the nominal value may remain the same, the real value diminishes according to the rate of inflation.
This means that the purchasing power for the same amount of savings will fall. Thus, savings accounts don’t offer a hedge against inflation and financial pressures that gold offers.
The Final Call
Evaluating the pros and cons of both forms of savings, it’s quite evident that nothing beats the promises that investment in gold offers. And of course, it also brings us back to the question posed in the beginning: will all my money vanish?
If you choose to invest your savings in gold, it not only weathers the impact of inflationary pressures but also offers a great return on investment. The only fluctuations that it may account for are in the rate of returns, which may rise or fall temporarily.
If you’re ready to put your trust and savings with us, let’s take it from there!