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.

Download investor guide

Investment Calculator

1. Investor information

2. Investment details

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 many other financial instruments and asset classes including many kinds of bonds and equities.

 

Wealth stored in banks is secured by the basic mechanism of banking. Banks want more capital in order to gain more influence, and as such they’ll provide a very useful service to customers 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. Gold’s value has also out-performed inflation for the past 10 years, making it a superior alternative in terms of financial gain.

 

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.

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, as we’ve seen in recent years that’s often not the case. Banks are worryingly prone to failure.

 

Many banks have breached their capital adequacy ratios in the past (the levels of capital they should maintain to be able to survive losses and avoid losing depositors’ funds). Capital adequacy ratios are crucial to making sure that banks avoid failure.

 

Should a bank fail, its depositors are to be compensated under EU laws – which may no longer apply once Britain leaves the UK. In addition, compensation can be slow and difficult to reclaim, and if the economy degrades sufficiently it may be impossible.

 

Are such bank failures possible? As the 2008 recession taught us, “too big to fail” is a fallacy, and banks operate in such a tightly interconnected network that even one going bust can affect the others around it.

 

Recently, with interest low and risk high, banks are struggling across Europe. Italy has an impending banking crisis bubbling below the surface, Santander has had to rescue Spain’s Banco Popular from collapse and Deutsche Bank saw a significant crisis in 2016 it has yet to recover from.

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 that may well use it for poor decisions that send it bust, when you can instead give up short-term gain in interest in favour of long-term stability 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.

Download investor guide

Investment Calculator

1. Investor information

2. Investment details


How to Buy Gold & Silver

  • Consultation

    From one of our dedicated specialists to understand what products are available and relevant to you. The extent of consultation is driven by you and is a good opportunity to ask us as many questions as possible. We listen to your circumstances and are happy to provide tax efficient solutions.
  • Purchase order

    When you feel comfortable and confident and you’ve had all your questions adequately answered you are able to complete a purchase order which is your instruction to purchase metals.
  • Payment

    In order to lock in the price and complete your order you can transfer funds via bank transfer or personal cheque. For smaller orders we may accept debit or credit cards.
  • Storage and delivery

    You can either receive your gold via our complimentary Insured delivery service or have your gold safely stored within a London Bullion Market Association (LBMA) vault whereby your metals are fully allocated, segregated and insured by Lloyds of London.

Get started

Fields marked with an * are required

Get Started

Why us

Reputable & fully accredited
Buy-back guarantee
Fully certified medals
Free delivery or storage
Investment focused
No hidden charges
5* independent reviews Read more >


Testimonials
Accreditations
  • Sir Geoffrey Leigh - Property Entrepreneur

    I found The Pure Gold Company knowledgeable and trustworthy and in my opinion wouldn’t hesitate to recommend them
  • Annabel Bartfeld - Ambassador for Great Ormond Street Hospital

    These guys were patient and seemed to understand my situation well. They weren't pushy or salesy and gave me all the facts so that I could make my own decision. I was surprised at how straightforward they made the process and would certainly recommend The Pure Gold Company to anyone looking to invest in gold or silver
  • Oliver Shipton - Partner at Lee & Thompson LLP

    Having thoroughly researched the gold investment market I found The Pure Gold Company. They were knowledgable, transparent and kept it all very simple. My gold arrived the next day and I’m now discussing options for silver storage. I wouldn’t hesitate in recommending them...
  • Racheline Natalie Michaels - Director, Hexagon of Highgate Ltd

    A friend recommended The Pure Gold Company, as they have a reputation of assisting beginners, they were fantastic. They explained in detail how it all works and what options would best suit our circumstances. They guided us on timing and saved us 6% by waiting a couple of weeks
  • London Chamber of commerce and industry
  • PLSA
  • RNS
  • british_numismatic_reverse_alpha1-e1401211458347
Reviews
Gold/Silver Graph