In the long term, investing money can bring greater benefits than keeping it in a savings account. Especially if you don't need access to your money quickly and you don't mind immobilizing it for a few years. However, your assets may lose value due to multiple factors beyond your control. Therefore, using gold as investment insurance can mitigate risks and reduce losses when stocks or cryptocurrencies fall sharply.
Gold could be much more efficient than cash when it comes to storing wealth. Interest rates remain low, meaning your money in the bank “earns practically nothing,” CNN Money reports. If inflation is taken into account, that cash may have lost value. Gold stocks tend to be more attractive to growth investors than to income investors.
Gold stocks generally rise and fall with the price of gold, but there are well-managed mining companies that are profitable even when the price of gold falls. Rises in the price of gold are often magnified by gold stock prices. A relatively small increase in the price of gold can generate significant gains in the best gold stocks, and owners of gold stocks tend to earn a much higher return on investment (ROI) than owners of physical gold. Let's go back to gold, silver and other precious metals.
It is often argued that precious metals are a bad investment because they offer no return; they yield 0%. When savings accounts pay 6%, it's easier to say. However, with negative real rates, 0% becomes an advantage, not a disadvantage. Since inflation remains at or above levels and interest rates remain low in the United States, the greatest risk to purchasing power is likely to be an insured deposit with a real return of less than (-) 5-25%.
Also note that, in the case of housing, an investment that earns continuous interest for 30 years at an annual rate of approximately 7.7% will be multiplied by a factor of 10 in 30 years. That rate is quite high by today's standards, but it might have been more feasible in the past (I'm not very familiar with historical interest rates). Again, keep in mind that just because houses have risen a lot in the last 30 years doesn't mean they're going to continue to do so. Just be sure to invest in a combination of riskier and safer assets to protect your portfolio from inflation and market crashes.
You can invest part of your savings in assets with an inherent value that will protect you from inflation, such as gold and precious metals. Among other things, the value of gold comes from its rarity and its long history as a stable medium of exchange. To avoid them, many investors choose to spread their money out and back it up with more stable investments, such as physical gold and precious metals. For this reason, investors often consider gold as a safe haven in times of political and economic uncertainty.
Nowadays, they see the dollar as a possible source of inflation that should be avoided, and they are exchanging dollars for gold. At the other end of the spectrum are those who claim that gold is an asset with several intrinsic qualities that make it unique and necessary for investors to keep it in their portfolios. The United States Gold Office (USGB) is a private distributor of gold, silver coins with 26% platinum in the United States. If you want to invest in cryptocurrency, you must first learn how to buy, sell and trade cryptocurrencies and choose the digital currency that is right for you.
Let's see how saving and investing can work together to help ensure a financial future for you and your family. Investors can invest in gold through exchange-traded funds (ETFs), buy shares of gold miners and associated companies, and purchase a physical product. So what's going on? Why do our economic policies seem to be contrary to the interests of the saver, while countries like Russia, which we frequently sanction, seem to follow the successful manual we used in the past? Much of it has to do with debt levels and the amount of gold held in reserve as a percentage of the currency issued. .