As the dollar continually slips against other major currencies, people are wondering how secure their futures are financially. They’re making their monthly contributions into their savings and trying to find ways to diversify their portfolios, all in preparation for a financial crisis. But a question that begs attention is if there was one method that was better at securing one’s finances over the others. With the amount of attention that gold investments are getting in the media these days, is it safe to say that buying gold is a better way of guaranteeing economic stability then say the likes of a bank account?
The point of having a savings account is to accumulate funds that will be stored safely in the bank. This is because it’s supposedly less risky in comparison to buying gold. Investments generally carry more risk because they are a gamble for wealth and future earnings. But most investors believe that without risk, there is no chance of greater gains. Returns are possible with a savings account because of the bank’s yearly interest rates, yet the percentages are often so small that earnings don’t seem evident at all. Even though commodity trading has the potential for large profits, the gold market is extremely unstable. The likelihood of the gold price shooting up is just as comparable to the possibility of a dramatic price plummet.
But despite the fact that gold prices tend to be volatile, investors in this commodity have seen great returns in the last few weeks, and these promising results are increasing their confidence in gold performance for the next few months. Germany has and continues to reap the benefits of gold investments, and considering that it was the only nation in 1970 that was capable of minimizing their inflation rate under 10%, many have been prompted to follow in Germany’s lead in terms of commodity trading. In an article from the country’s leading trade journal for financial intermediaries Finanzwelt, it was revealed that buyers were optimistic for the yellow metal because of the positive buying and selling trends provided by the BullionVault Gold Investor Index. The available information from BullionVault is kept up to date and gives investors a clear idea of how the commodity is fairing in the industry today.
There may be a handful of financial advisors across the internet that recommend gold over savings, however there is no telling which insurance strategy is more beneficial than the other. A savings bank account carries almost no risk, in contrast to gold investment which is an extremely unpredictable market. Though a savings account is typically the chosen method, it might be best not to put all your eggs in one basket.
This is a guest post