The only way of saving that has stood the test of time

Want to know the only savings account that won’t lose you money over the long term?

I’ll give you a clue, it isn’t associated with any high street banks.

And no matter what happens with the never-ending Brexit negotiations, it won’t be affected.

In fact, even if interest rates become negative, this savings account will not depreciate.

Okay, another, bigger clue.

This form of savings account has stood the test of time.

If you’d put the equivalent of £1,000 into it 2,000 years ago, it would still be worth around £1,000 today.

I am, of course, talking about gold.

According to an article on the World Economic Forum (WEF) from September 2018:

Gold investment has been well known to provide a balance of security and attractive returns. In the past 18 years, the price of gold has grown steadily at 400%, with 22% year on year growth. Unlike cash where value continues to deplete over time, the value of gold continues to increase if adjusted by trend.

It continues:

There needs to be a shift of perspective from “buying gold” into “start saving in gold”. Rather than saving cash to buy gold as a final destination, they can just start saving in gold.

The crux of the WEF article is that gold is a better savings vehicle than cash because it retains its value better.

(I’m sure you’ve heard the statement that one ounce of gold in Roman times would buy you a nice set of robes, and one ounce of gold today (£1,015 at time of writing) would buy you a nice tailored suit.)

But, although gold is arguably a far better vehicle for saving than cash, it is not easy to save in small amounts. It is only really accessible to those with a large amount of money at their disposal.

From the article:

Traditional gold investment has a high cost of entry. A certified 1gr gold bar (the lowest common denomination) is traded at around US$ 45. Let us consider the GPD per capita in some Southeast Asian countries: Indonesia at US$ 3,570 (US$ 295/mo), Thailand at US$ 5,900 (US$ 490/mo), Philippines at US$ 2900 (US$ 241/mo), Myanmar at US$ 1,275 (US$ 105/mo). Given the implied average income per month, most people in Indonesia need to save 15% of their monthly income to save 1 gr of gold compared to 9% in Thailand, 18% in Philippines and 42% in Myanmar.

In other words, gold investment is a luxury that very few people can afford.

The article argues that with new technology, saving with gold can be accessible to anyone, with any amount of money.

And conveniently the author’s company has launched an electronic gold savings service.

“With e-gold, everyone can start a gold investment with USD 3 cents only. This price point removes the barrier of entry and allows a much broader part of our society to participate in gold investing.”

Is the author’s new service reputable? Maybe, I mean he managed to buy his way onto the WEF’s website.

But it’s unfortunate he is using the term “e-gold” to describe it, which if you read yesterday’s article – the unfortunate tale of Doug Jackson – you’ll know is a term synonymous with hacking, organised crime, FBI investigations and criminal convictions.

As I said yesterday, there is now a cryptocurrency (Digix Gold Token) that represents 1 gram of physical gold stored in vaults in Singapore and Canada. And it is redeemable upon request.

But I guess right now, cryptocurrencies can be difficult for the average person to buy into, too.

Plus, many of them are also synonymous with hacking, organised crime, FBI investigations and criminal convictions.

Still Digix Global is audited by Bureau Veritas, which is “a renowned world leader in testing, inspection and certification services. As stated on their website, they have had over 150 years of specialist assaying to the precious metals industry.”

If I was to invest in gold, Digix Gold Token is probably how I would do it. But then, I am a massive crypto proponent and am very comfortable buying, trading and storing it.

As I said yesterday, I have taken a big interest in gold, after getting early access to some research my colleague Eoin Treacy has been doing into the gold price.

If you want to find out what Eoin discovered, you can now see it all for yourself here.
If you have any interest in preserving your wealth for the long term, it is well worth hearing what Eoin has to say.

Until next time,

Harry Hamburg
Editor, Exponential Investor

PS If you want to find out how you could turn falling stock prices into massive profits, click here now. Eoin Treacy will show you how he’s planning to use a simple trading technique to come away with up to £100,000 this year – and he’ll walk you through exactly how you can use it, too. Click here to find out how.

Category: Commodities

From time to time we may tell you about regulated products issued by Southbank Investment Research Limited. With these products your capital is at risk. You can lose some or all of your investment, so never risk more than you can afford to lose. Seek independent advice if you are unsure of the suitability of any investment. Southbank Investment Research Limited is authorised and regulated by the Financial Conduct Authority. FCA No 706697.

© 2019 Southbank Investment Research Ltd. Registered in England and Wales No 9539630. VAT No GB629 7287 94.
Registered Office: 2nd Floor, Crowne House, 56-58 Southwark Street, London, SE1 1UN.

Terms and conditions | Privacy Policy | Cookie Policy | FAQ | Contact Us | Top ↑