Gold and silver Savings
People have invested in gold and sliver in uncertain times for centuries. Saving gold or silver is a smart way to build capital and to protect saved capital from inflation. In financially and economically turbulent times, gold and silver keeps its value better than many other investment categories such as currency, for example.
Protecting your capital
The historically low savings interest rate combined with increasing inflation is bad news for every saver. That’s because the saver will not see his or her capital grow thanks to the interest rate – rather, the history of gold teaches us that the capital will become worth less due to high inflation. This means that the real profit on a savings account is negative. So thanks to the increasing cost of inflation, keeping your money in a savings account at the bank actually costs you money after taxes!
Real interest
The effect of current inflation is attacking the purchasing power of savings. The relationship between inflation and interest on savings that banks are offering can be demonstrated with one number: the so-called real interest. Here, inflation is deducted from the interest on savings to see what remains in net returns. This figure does not take into account the taxes to be paid over the savings balance. A sharp decrease in real interest is visible. Conclusion: Saving with the bank has never been so unprofitable.
Saving silver and gold as interest compensation
Gold and silver are largely separate from the performance of many other investment categories. This makes saving silver and gold a practical and flexible manner of spreading the risk of the saved capital in currency (such as euros). It is true that the previous medal does not yield any interest or dividends, but it is reasonably stable in value. When you decide to buy gold or buy silver physical, you are not dependent on the performance of a third party. Gold and silver cannot go bankrupt, in contrast to companies, banks and even countries. One of the most important characteristics of gold and silver is that no additional copies of it can be printed. Thanks to this the sold value of the precious metal is retained.
Return on saving gold and silver
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By saving silver and gold you are taking advantage of the gold and silver price in dollars. The price of gold and silver managed to rise even during one of the most unfavourable market conditions during the past decade. Both precious metals have been among the best-performing investment categories in recent years. The figure on the right illustrates the return on savings of EUR 50.00 per month in gold and silver, compared to saving at the bank over the past 10 years.
Return to risk ratio on saving gold and silver
This illustration demonstrates the clear chance of higher returns when saving gold and silver. The chance of a higher return is associated with more risk, however. The prices of gold and silver can decrease in contrast to a fixed low interest rate at the bank.
