Gold Vs Banks


If you want to keep your money safe, why not just store it in a bank? Why invest in physical gold? The Pure Gold Company explains why using physical gold to protect your wealth is the safer option.


WHY BANKS?

Banks began as institutions that existed to store money. They are one of the linchpins of the global economy, with the amount of interest paid to those who store money there a matter of concern for national governments and financial institutions.

In conventional wisdom, banks are the place to store cash, as well as other financial instruments and asset classes including many kinds of bonds and equities.

Banks want more capital to invest for profit, and they provide a useful service to customers looking to borrow money in order to gain more capital.

Storing wealth in the bank is convenient in the short term and reasonably secure from external theft, as advanced encryption protects a customer’s money, along with heavy security measures.


WHY GOLD?

Meanwhile, there are many good reasons to invest in gold. There’s a finite supply of gold and the metal is in demand during political and economic uncertainty, which means that gold prices and the metal’s value will increase over a set period of time.

Gold is one of the only available forms of private investment, falling outside the influence of the financial system, the government or any banks. If properly allocated, an individual or investor’s gold reserves belong to them alone, and can be traded or sold at their discretion.

Importantly, it’s also safe from bank failures and economic downturns. Gold retains a consistent value despite other economic crises, partly thanks to its rarity and partly thanks to its reputation as a safe haven.

Gold also comes with numerous tax benefits both during purchasing and in other contexts like inheritance. Unlike cash stored in a bank, gold’s value rises with inflation in line with other products and commodities.

Investing in gold also helps you avoid the risks of having all your wealth stored in a single form. Diversification is the best way to ride out economic strife and recessions, especially when when it involves utilising mediums like gold.

Fine Gold 999.9

BANKS VERSUS GOLD

If it comes down to putting your wealth in a bank or investing it in physical gold, it’s worth your time and effort to take the extra step to invest in the precious metal. While banks underpin the entire financial system and sell themselves as secure, they can fail, as the 2008 Financial Crisis and its aftermath showed. To help bolster trust in the banking system the UK government does cover bank deposits up to £85,000, but if any more is invested it is at risk.

Stress tests have forced UK banks to strengthen their reserves to avoid another global financial crisis, but the interconnected nature of the financial system means instability in one bank can quickly spread to others anywhere in the world.

Keeping cash in the bank will certainly not beat inflation in the current climate. With interest rates below 1% in most savings accounts and inflation more than double the Bank of England’s target, the value of any cash in the bank will be eroded quickly.

Gold Bar

CONCLUSION: GOLD

One of gold’s key advantages is that it can be purchased to sit entirely outside the banking system, letting you sleep soundly knowing that your money is protected from banking crises and financial crashes.

Why place your wealth in the hands of a financial institution with a risk of collapse and interest so low it doesn’t keep up with inflation, when you gain long-term safe-haven status through gold investment?

Contact The Pure Gold Company today for more information on purchasing investment-grade gold for personal or financial use. We can offer assistance and advice throughout the purchasing process, as well as advice on storing and securing your physical gold and how to invest wisely to ensure your portfolio is balanced and ready for anything.