Why gold instead of saving

In many cases, investing in gold is better than saving. As a saver, you have probably dealt with a negative interest rate. Instead of your savings increasing, they decrease. In this way, saving no longer yields anything for you.

Saving, however, remains something many people do, because it is important to always have some money set aside. This serves as a buffer for unexpected and/or large purchases. Fortunately, there are other options that, especially in times of negative interest, are much more advantageous. Therefore, invest in gold or silver as a supplement to your savings.

Stability of gold in times of crisis

During the economic crises in 2008 and 2009, the savings interest rate dropped from 3 to 2 percent. In 2010, it seemed that the interest rate would rise again, but unfortunately this did not happen. The interest rate is now much lower, and in some cases there is even a negative interest rate. This means that you must pay money on your savings instead of earning interest. Over time, your savings thus lose value.

One way to counter this loss in value is to invest in gold. If you own gold, you do not pay negative interest, and your money actually becomes more valuable over time. Gold is a very valuable and scarce good that has been in high demand for centuries. Because of this, its value continues to rise.

Money in a savings account can also lose its value due to inflation, but this is not the case with gold. Historically, gold has always maintained its value, even in times of extreme turmoil. Of course, there have been times when the gold price dropped slightly, but it has never been so severe that it lost its value.

Comparison between gold and traditional savings interest rates

Traditional savers have had a hard time in recent years. Savings interest rates are low, and due to inflation many people are left with less savings. For comparison: in recent years the average savings interest rate was 1%, while the average annual gold price increased by 6 to 8%. Therefore, investing in gold is recommended. Historically, gold often increases in value, even in times of economic uncertainty.

How do you start investing in gold?

If you want to start investing in gold by buying gold coins and gold bars, it is important to first set goals. Do you want to protect your assets with gold, for example, or are you aiming for the expected good long-term return?

Always buy your gold from a reliable, recognized provider, such as The Silver Mountain. After purchase, make sure you have a secure storage location. For this, you can use the services of our sister company Edelmetaal Beheer Nederland. They have reliable storage locations in the Netherlands and Switzerland. Do you want to start investing in gold? Contact us for advice.

Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past performance is no guarantee of future results.