My grandfather, a wise man despite his humble blue-collar job, was great at managing money. Thanks to him, we never faced a financial problem he couldn’t solve. He taught me a valuable lesson: each dollar is like a seed. You can either spend it now or invest it so it grows into financial abundance later.
He explained that saving money is like planting the seed, and smart investing is like nurturing it to full growth. Many people get stuck at the saving stage because they see investing as risky. While most people suggest saving money in a bank account, I believe there’s a better option: buying gold.
Here are three strong reasons to choose gold over a traditional savings account:
1. **Gold’s Long-Lasting Value**: Savings accounts deal with fiat currency, which depends on a government’s economic stability. The problem with fiat currencies, like the dollar, is that they can be unstable and even become worthless in some political situations. Gold, however, has been globally accepted as valuable for centuries. No matter where you are in the world, gold retains its value, making it a reliable financial asset.
2. **Gold Won’t Become Worthless**: Keeping money in savings accounts can be risky due to inflation, which reduces the dollar’s purchasing power over time. From 1916 to 2016, inflation increased by 316.4%, but gold’s value went up by 465.3% in the last 40 years. Although gold prices can fluctuate, its inherent value remains solid because of the costs involved in its production.
3. **Portable Wealth**: Gold is portable and discreet, making it a great way to preserve wealth, especially in uncertain times. In contrast to bank accounts, gold isn’t subject to government tracking or freezing. It’s easy to transport significant value in gold. For example, $200,000 worth of gold can fit in a small package, unlike the same amount in cash, which would be bulky and harder to move across borders due to regulations.
These points clearly show why saving money with gold might be a smarter option compared to traditional saving methods.