When it comes to saving money, many people prefer to save a percentage of their earnings in man-made currencies. But is this really the best option? Gold could be much more efficient than cash in storing wealth. Interest rates stay low, meaning your money in the bank “earns virtually nothing,” CNN Money reports. When inflation is taken into account, that cash may have lost value.
Gold is recognized as having a history of long-term stability. Putting money in gold instead of a savings account or even under the mattress could mean better returns, fewer risks and more peace of mind. Learn more by comparing the savings benefits of gold versus cash. Saving money with gold gives you the security of a “savings account” and the potential for investment returns without the associated risks of investing.
Here are 3 reasons why saving money with gold makes more sense than putting money in a savings account.First of all, when you buy gold, you will consolidate your assets, something you should always aim for. Mostly because cash is worthless unless you have something to back it up with, whereas gold will always hold its value. On top of that, if you decide to buy gold, you'll have something to pass on to your next generation, as many people around the world have been doing for years.Every investment has advantages and disadvantages. If you object to having physical gold, buying shares in a gold mining company may be a safer alternative.
If you think gold could be a safe bet against inflation, investing in coins, bars or jewelry are paths you can take to gold-based prosperity. Finally, if your primary interest is to use leverage to benefit from rising gold prices, the futures market could be your answer, but keep in mind that there is a reasonable amount of risk associated with any leverage-based holding.It rose 6.2% year-on-year, the biggest increase since November 1990, and it could be a good time to assess how you can save money when considering gold investments. In other words, the coins that were used as money simply represented the gold (or silver) that was currently being deposited with the bank. Grandpa mentioned that saving money is the first step to planting the seed, while smart investments are the last step to planting the seed.
In other words, even though the face value of a savings account increased from the interest income earned, the overall purchasing power of the money saved was losing value.When investors realize that their money is losing value, they will begin to position their investments in a hard asset that has traditionally maintained its value. Gold is one such asset and it's smarter to save money with gold instead of putting money in a bank account because it is portable and consolidates your assets. A gold saver would have accumulated 26,114 ounces of gold (812,220 grams of gold), representing an annual appreciation rate of 13.4% after the cost paid to GoldMoney for the services provided. Therefore, you can be sure that you have a valuable asset that you can use in transactions or convert into money regardless of your location in the world.Where once the mantra of money management was “invest it and retire rich” it is now “save it or lose it” - a healthy reaction to chaos, greed and the notable lack of security in traditional investments including those sponsored by Wall Street financial firms.
When it comes to saving money for future generations or protecting yourself from inflationary pressures, investing in gold could be an excellent option.
