Gold instead of saving

As a saver, you are probably familiar with it - negative interest rates. Instead of keeping your savings, it becomes less. A negative interest rate can be as low as 0.5%. This way, saving no longer pays you anything.
However, saving remains something many people do. This is because it is important to always have some money behind that can serve as a buffer for unexpected and/or large purchases. However, with saving, there are also many who do not like the idea of simply keeping their money under the mattress. Therefore, putting your money in the bank seems the smartest thing to do. However, saving has become expensive for high-net-worth individuals and companies because of the negative interest rate payable on a certain percentage of savings. Yet there are other options that, especially in times of negative interest rates, are much more advantageous. In fact, savings can be replaced by investing in precious metals. 
 

Savings rate falls

During the crisis of 2008 and 2009, savings rates went from 3 per cent to 2 per cent. In 2010, interest rates seemed to rise again, but unfortunately this was not the case. The interest rate is now many times lower and has become a negative interest rate. This means you have to pay money on your savings instead of fixing it. Over time, therefore, your savings will become worth less. 
 

Saving is a loss of value

Currently, saving money equals loss of value. One way to counter this is to invest in gold. This is because with gold, you do not pay a negative interest rate, but rather your money becomes more valuable over time. As with savings, with gold there is no cash flow. However, gold is a very valuable and scarce commodity that has been in high demand for centuries. As a result, its value continues to rise. Where money can be reprinted, gold is a commodity. As a result, there is a limited amount of gold available, so it actually remains scarce. Another advantage of investing in gold is that it preserves the purchasing power of money. 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 retained its value even in times of extreme turmoil. Of course, there have been times when the gold price fell slightly, but this has never been so severe that it lost its value. 
 

Risks

Besides retaining its value, gold also has few risks. With investing in gold, for example, there is no counterparty risk where what you invest in goes bankrupt. This offers you security. So besides gold being a shear asset, it is something you can own. It is a valuable commodity and something physical. This can give a nice feeling as you can see what you have invested in.
By investing in gold, you create security for the future. It is smarter to invest in gold than to save as this way it is much more certain that the value will be preserved. Savings rates are currently historically low and can always go lower. Should that happen, even less of the savings will remain. Saving through a savings account is simply not worth it at the moment. Instead of keeping your money, it disappears into the negative savings rate. Gold preserves the value and purchasing power of your money. It is an interesting alternative with several options. 
 
Disclaimer: The Silver Mountain does not provide investment advice and therefore this article should not be considered as such. Past results do not guarantee future results.