Have you heard something about gold savings accounts? But what is a gold savings account? Why do you need one? What should you look after when deciding on a gold savings account and finally I will show you how to set up a FREE gold savings account today.
Excited? Let’s dive into it.
We all know the importance of saving money. Although a lot of people today have no thought of tomorrow when it comes to their finances and no savings what so ever.
This is a very dangerous way of looking at life. I mean what would you do if you lost your job today and therefore your income? Maybe you couldn’t find a new job in say 4-5 months. Would you have savings enough to keep food on the table for you and your family?
Another important reason for having a savings account is retirement. I know the view on our retirement accounts today is starting to change. With the way our retirement accounts are set up today it’s going to be almost impossible for the coming generations to get any money from the government when it’s time to retire.
I think you have been feeling this but it might just be hard to accept it. Our governments are drowning in debt and it’s not getting better. So the probability of you getting supported by the government for your retirement is rapidly weakening.
So we have to do something about this ourselves, right? Why would you only trust in the government, that clearly can’t keep their own finances together, to provide for you when you retire? Why not take care of it yourself?
That way if you would be taken care of by the government (even thought the probability is lower the younger you are) you would still have a bunch of extra saved money that you can travel for or do whatever it is you want to do in your retirement.
There is no reason for not saving some money for an uncertain future.
Now when we have discussed the importance of having a savings account it’s time to start talking about what a gold savings account is. First I think we need to define what a savings account is.
What is a savings account?
A savings account is what you use to put money aside every month for yourself. I know this might sound obvious but I needed to define that. It’s the process of how your saving your hard earned money to spend a day in the future.
The two most common ones today is either to save your money by going to the ATM every month to take out cash and stuff it under the mattress (under the mattress is just an expression and you can put the cash wherever you want).
The second option is to have a savings account at your bank. One account that is connected to your card and then another account where you transfer over some money every month from your paycheck.
We all know that saving your money under the mattress doesn’t work anymore and there is a simple reason why: our wealth is getting eaten up by inflation every year. Have you noticed how much less groceries you get for $100 today than you did 10 years ago?
The reason why is because the inflation is making the prices for the goods and services that we buy go up. This means that if you save $100 under the mattress today it might buy you 10 kg of rice. But the next year it just buys you 9.5 kg, the year after that 9 kg and so on.
Why would you save your hard earned money in something that is definitely declining each year? That sounds stupid to me, what do you think?
By saving your money in a regular bank account your are also exposed to the ravages of inflation. It didn’t use to be like that, because on a savings account at the bank you would get somewhere around 5% in interest before.
That way the 5% would cover the rate of inflation so you at least didn’t loose any money every year. Since the financial crisis hit 2008 we have had record low interest rates. That means that now you will also loose money every year due to inflation on a regular savings account at the bank.
This is what CNN have to say about the low interest rates
The average return on a savings account in the United States is a mere 0.1%, according to Bankrate.com. That’s a big change from 2006 when savers could get up to a 5% return at the bank.
You want safety with your savings account
This is very important as well. You don’t want your hard earned saved money to be able to disappear over night. This is why there is a big difference between investing and saving.
In investing your can get a higher interest rate (even though that is down to record levels as well) but that comes with more risk. If you invest in things like mutual funds and so on every month you can easily see those savings evaporate over night, just like it did for millions of people 2008.
With a savings account you want low risk. This is money that no matter what happens you should always have. No event in the world should be able to completely wipe your savings out. Sounds very logical right?
Well, do you think that the bank have all the money in a vault somewhere that you have on your savings account? When you log into your online bank it might say “You have $5000 available”. Do you think that money is stuffed away in a vault somewhere with your name on it?
Of course not! In fact, because of a thing called fractional reserve banking the bank only needs to have around 5% of it’s customers money in tangible assets. This means that if 5% of the banks customers wanted their money back they would empty the vaults and the bank would go under.
Your hard earned money is saved in 1’s and 0’s on a computer at the bank. The money is not there which means that there is a million different ways that your savings (is it really savings if the actual money doesn’t exist?) can disappear over night.
In 2008 when the financial crash happened the American citizen had to bailout the big banks because they had been operating way to risky. If the US citizen didn’t bail them out they would have gone under and every person with savings account in the big banks would have lost their money.
Today, 8 years after the big banks are operating in the exact same way as before 2008. Only this time, the US government is broke themselves and can’t bail out the banks. This time the people with savings in the bank will loose all of their “savings”.
That’s not the security that I want for my money in my savings account, do you?
What is a gold savings account then?
I found it important to discuss what a savings account was and the options that you have (if you do not want a gold savings account) before we talked about what a gold savings account is. Thanks for your patience and I think you will understand a gold savings account better now.
Basically a gold savings account is like a regular bank savings account. But instead of your hard earned money is stored in 1’s and 0’s at a computer in the bank your money is in gold.
By having your money in gold instead of dollars you are protected against inflation. Just as an example: if you would have saved $10,000 in gold in 2000 your savings would be worth around $52,000 today. That is the kind of appreciation that you want for your savings account, right?
Another great thing with having your savings in gold instead is the security. Gold has kept it’s value for thousands of years. Gold is an investment with intrinsic value so it will never go to zero. That’s like saying your house can be worth zero dollars.
This is also what you want with a savings account, right?
You don’t want the possibility of your savings getting wiped out by some type of event. Gold will always be the safest investment that you can do.
I’m pretty sure that you can understand why it’s smarter to have physical gold in your savings account than to just have some 1’s and 0’s in a bank account or some paper notes under the mattress.
What to look for in a savings account, then?
When you have understood that saving in gold is the way to go there is one very big thing that you have to look for when your choosing a gold savings account.
I have been investing in gold for over 10 years and I have seen a few companies trying to offer gold savings accounts but in my view they have all been a big scam. The only reason why is because they do not store your gold physically.
What you want is a company that you will transfer your declining paper money to every month, that will then purchase gold for you and store it in a safe deposit box that has your name on it.
What a lot of the other companies have done is to just take your money and “hold” them on their books. They do not purchase any gold until you want to take delivery of your gold.
There is a lot of things that can happen between you saving your money and you wanting to take delivery of it.
In short what you want to do is to send some money to a company that keep putting some physical gold into your own little safe. When you then want delivery of your gold you know that it’s there.
What do I recommend then?
Like I said, I have been investing in gold for a very long time and I have been looking for a company that provided just what I was looking for. A few years ago I finally found one that did store your gold for you and where you could just transfer some money either weekly or monthly.
The absolute best thing with it? It’s completely FREE to set up. There is no hidden fee’s or any yearly cost. Just a free gold savings account where you can put aside some physical gold as a savings for yourself and then take delivery of it when you want.
I hope I have answered the question what is a gold savings account and now you know why you need one and what to look for. Leave a comment below if you have any questions and check out the Karatbars review below to find out how I save in gold every month.