14 Comments

  1. Never knew that banks needed to have the physical gold. I do understand the fluctuation of gold. I will look into Karatbars as it sounds indeed very promising.

    thanks for this

    • Hi Fedor and thanks for the comment.

      Yes before 1971 we were on a gold standard in the US. Then all the other currencies in the world were pegged to the US dollar. This meant that almost the whole western world were on a gold standard. So when Nixon took the US of the gold standard he took the whole world off it.

      Gold is up almost 25% percent the first 6 months of 2016 now. Please let me know if I there is any questions you have about Karatbars.

      Marcus

  2. Marcus, great article. You convinced me that I need to add gold, that is Karatbars, to my portfolio. Thank you for this comprehensive and extremely valuable article! Keep up the great work!

    All the best, Kevin

    • Thanks for the nice comment Kevin.

      Yeah every healthy portfolio consists of at least 20% gold in my opinion. Gold is some wealth that will never disappear no matter what. We have an economic system today that is not sustainable. You can’t keep on borrowing money as a country for everything for ever without consequences.

      This has happened a lot of times before in history and every single time gold has been the place to be to protect and increase your wealth.

      Please let me know if there is anything that I can help you with. Opening up a free gold savings account is a great way to start.

      Marcus

  3. My honey and I were just talking about this!!!! One of our friends is also very passionate about this topic! He already has a nice stash and is convincing us to do the same! I’ve bookmarked your site to show my honey and our buddy. Thank you for this information and warnings!!!

    • That’s awesome Rachel.

      I have been investing in gold and silver for a very long time as well and it’s a great feeling to look at your gold and hold it in your hands. For me it’s one of the best feelings ever. Please have a look at my top 3 reasons for why you should invest in gold to look at some more proofs if your not convinced yet.

      If your already convinced that gold is the way to go I suggest you have a look at how to invest in gold, and then where to invest in gold. After that you should be all ready to start your gold investing career.

      Investing in gold for me is a must if you’re going to survive the coming economic collapse in my view.

      Marcus

  4. Great information on gold savings. I know that I always feel a bit wary having all of my money on a computer screen. Knowing that there is something physical like gold being kept as your money definitely can help to ease the wariness of keeping everything digitally. Thanks for the info!

    • Hi Pete and thanks for your comment.

      Exactly. And the most important thing is that when you have your ”money” in a bank in 1’s and 0’s on a computer screen anything can happen to them. If the bank fails your money is gone, if the payment system fails you can’t access your money. If a systematic crisis happens they will take you money in a bail-in.

      On top of all this risk you know for a fact that you will lose purchasing power every year. Inflation is maybe 2% to be generous, because the government numbers are crazy. Everybody that goes to a grocery shop realize how much the prices are going up every year.

      So to keep the same purchasing power you need at least a 2% rate on your savings account at the bank but today you should be happy to get 1%. So you lose 1% in purchasing power (inflation – rate) every year to take on a huge risk. Worth it? I don’t think so.

      Save your hard earned money in physical gold instead that is a tangible asset that can’t just disappear and that has gone up 25% in the first 6 months of 2016. That’s like having a savings account with 25% rate.

      Thanks,
      Marcus

  5. OK. I totally understand about gold savings, although I have never invested with them. Part of the reason is it’s hard to know which company is to be trusted. I’ve seen even huge popular company closed down as it was exposed with scam. The alternative is with bank. But i’m not sure if bank is offering physical gold to trade? This Karatbar definitely looks promising. And if the transaction is ease, I might just consider. Is there any minimum commitment needed?

    • Thanks for your comment Kenny.

      Yeah it’s always hard to trust a company online. You have to do some serious investigation yourself and that’s what I hope that I can help you with.

      To have your money in the bank is also a big scam in my view. These guys went bankrupt 2008 and got bail out. They are now just as leveraged up again and they will fail again. This time there is only depositors that can bail them out. We all know that the big banks are ”to big to fail”.

      If you have your money in the bank there is a big possibility of you losing all of your money in the next financial crisis. And as I said, because of fractional reserve banking there is only about 5% of your actual money that is stored at the bank. The rest of it is loaned out. So if 5% of the banks customers want their money back then they are bankrupt.

      Some banks offer physical gold to trade but it’s not that common and most of them that I have been looking at do not store anything physical for you. So it’s just a regular bank account disguised as a gold savings account so they can charge some more fee’s.

      The transaction is so easy it’s ridiculous. You choose if you want to save weekly or monthly and then you choose how much you want to transfer to physical gold (minimum is 50 euro which is about 56 USD right now). After that you connect your credit card to Karatbars and that amount comes out of your card either weekly or monthly and gets transferred into physical gold and stored in your own little safety deposit box until you want to take physical delivery of your gold.

      Please contact me if you have any other questions. I’m here to answer all of your questions.

      Marcus

  6. Hey Marcus,

    Great blog on gold, it’s value, and what to look out for when you are storing gold overseas.

    I like how you explained the purchasing power of dollars and how hold fluctuates in price due to the strength of the dollar. The higher the dollar or the greater strength of the dollar, the value per ounce of gold will go down. The lower the dollar or less strength, the higher the price of gold. They are directly related and fluctuate accordingly.

    Karatbars on the other hand is an amazing company, I came across them like Marcus over 2 years ago. It made sense for me to save in gold to hedge against inflation and currency fluctuations.. So I set up an account. The best part is that it is in small denomination which means I do not need $1400 up front to get my hands on some gold. Karatbars has made it available for me to take a small portion of each pay check to put towards gold(around $100 sometimes more).

    They deliver there gold on time and I love the idea of having the majority stored overseas in a private secured vault. You cannot go wrong.

    Great info Marcus!

    • Hi Quinn and thanks for your comment.

      You’re absolutely right that it is so much easier to save in gold in smaller denominations. Like you say: it’s not that easy to buy an ounce of gold for $1400. But everybody could afford to set a side around $100/month to create a meaningful savings for themselves.

      The free storage was one of the best things that I thought Karatbars offered. Because like you say you can store it overseas for free and then take physical delivery of it when ever you want. The fact that it costs just as much to ship 1 gram of gold as it does to ship 40 grams is great as well. This way you can store it for free until you have a significant amount and then take physical delivery of your gold. This way the shipping cost is almost nothing per gram of gold.

      Thanks for the great comment and saving in gold is definitely the way to go.

      Marcus

  7. Marcus,
    There’s also a benefit to ”thinking in gold” as opposed to ”thinking in dollars.” When the price of gold goes up, gold hasn’t changed. One ounce of gold is still one ounce of gold. The dollar has actually gone down (it takes more dollars to buy an ounce of gold.) It’s the dollar and other fiat currencies that are fluctuating. The ounce of gold remains the same.
    Instead of using the dollar as the benchmark, it would be instructive to use gold as the benchmark. I think that doing so would shock many ”dollar thinkers.”
    _aleph_

    • You’re absolutely right Thomas. Thanks for the great comment.

      A lot of people are measuring all the products and services that they buy today in dollars. If you would be measuring them in gold you would indeed see what you’re saying. That the dollar is falling in purchasing power.

      If you would measure the stock market in for example gold you would see that the stock market is actually going down compared to gold.

      Same goes for a lot of the talk about inflation that the price of bread, milk and all the other things you buy is going up. Well, it’s the dollar going down. If you look at the price of bread for example in gold you will see that you can buy more loafs of bread today with one ounce of gold than you could 10 years ago.

      So having your savings in gold is a great hedge against inflation and to keep your purchasing power.

      Marcus

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