Many people who save often deposit their excess money into a ‘gold reserve’ account or other aptly named account set up by banks to attract savers. Rates of return, especially in times like the ones we see today, are very low, and savers by all accounts seem hard to come by. It is ironic that banks use such descriptions to name their deposit accounts in this way luring customers into thinking they are getting something they are not. A ‘gold reserve’ account or indeed a ‘gold’ credit card makes the customer believe that gold is somehow tied to their money based on their limited understanding of how money works.
Of course, the gold standard, which was at one time used to back fiat money, was phased out by the Fabian economists many years ago and the system we have now cannot really be described as having any substance. Many believe that it is only a matter of time until the entire fiat money system that controls the world finally collapses and brings ruin to many decent and hard-working citizens. Conspiracy theorists have always been mocked, but the reality is that with most conspiracy theories there is an element of truth.
That aside, savers need to understand that there is a real alternative to banks and their aptly named ‘gold reserve’ accounts. With the advent of the Internet, many people use online banking services, and similarly, the Internet has allowed the rise of other platforms to allow ordinary people to save in different ways. All forms of savings have an inherent risk associated with them. If a bank went bankrupt, would savers be guaranteed their money back? We have seen in Iceland that banks failed to honor their depositors and many individuals and institutions have lost many thousands. Governments have declared that they will guarantee savers their money up to a limit, but as we have seen with Greece and now with Portugal, how safe are these guarantees if the nation were to go bankrupt as well?
The pondered question then is where is my money safe? Gold, as its name resonates, has to be the answer and it is up to each individual to determine the safest way to buy gold and store it. The ‘forex’ trading platform allows people to buy gold and sell it whenever they see fit. Another establishment is Bullion Vault that goes a step further. They claim to store your physical gold for you and may even provide you with the physical product once enough is purchased.
Both facilities allow you to operate the accounts just like an online bank account, so instead of depositing your savings into a high interest “gold reserve” bank account, why not buy real gold and operate your savings knowing that the money is invested in something tangible and historically reliable?
