Gold instead of saving

Why should you buy gold instead of saving? As a saver, you’ve probably experienced negative interest rates. Instead of keeping the value of your savings, it decreases. A negative rate can even amount to 0.5%. In this way, saving no longer yields any return.

Still, saving is something many people continue to do. It’s important to have money set aside as a buffer for unexpected or major expenses. Many people also don’t feel comfortable leaving their money idle in a bank account. So keeping money in the bank seems like the safest choice.

However, saving has become expensive for wealthy individuals and businesses due to negative interest charged on part of their savings. Fortunately, there are alternatives that are much more beneficial, especially in times of negative interest. One of those options is investing in gold.

Why traditional savings methods no longer pay off

In recent years, interest on savings has continued to decline. During the 2008–2009 financial crisis, interest rates dropped from 3 to 2 percent. In 2010, rates seemed to rise again—but unfortunately, that didn’t happen.

Today, many banks offer negative interest rates. This means you actually pay to keep your savings in the bank, instead of earning interest. Over time, your savings lose value.

The advantages of gold compared to saving

One way to avoid the loss of value from saving is by investing in gold. When you own gold, you don’t pay negative interest—instead, your asset may increase in value over time.

Gold is a rare and valuable commodity that has been in high demand for centuries. As a result, the value of gold continues to rise. While money can be printed endlessly, gold is a natural resource with a limited supply, helping it retain relatively high value.

Another advantage of investing in gold is that it preserves purchasing power. Money in a savings account often loses value due to inflation—but this is not the case with gold. Historically, gold has always maintained its value, even in times of extreme economic turmoil. Of course, there have been moments when the gold price dipped slightly, but such declines have never been severe.

Risks and guarantees of gold investments

Like any investment, gold carries certain risks. Its price can fluctuate, causing temporary drops in the value of your holdings. There are also costs involved in storing and insuring physical gold. Want secure and affordable storage? Discover the services of our partner Edelmetaalbeheer Nederland, offering high-security storage facilities in Rotterdam and Zürich.

Still, the guarantees are decisive for many investors. With physical gold, there is no counterparty risk: you own a tangible asset that won’t disappear if a bank or intermediary fails.

Gold is globally recognized, easy to trade, and has proven itself over centuries as protection against inflation, crises, and currency depreciation. This reliability and independence from intermediaries make physical gold a solid and trusted choice.

Who is gold suitable for as a savings alternative?

Gold is especially appealing to savers and investors looking for a long-term investment. It’s ideal for those who want to protect their wealth from inflation and financial market uncertainty.

People seeking stability also often choose physical gold. Because it is tangible and retains value, gold is a valuable addition to any diversified investment portfolio.

Want to know if investing in gold is the right choice for you? Take a look at our range of gold bars or gold coins, or contact us for personalized 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.