{"id":47979,"date":"2021-06-17T09:41:22","date_gmt":"2021-06-17T01:41:22","guid":{"rendered":"https:\/\/www.imoney.my\/articles\/?p=47979"},"modified":"2024-02-05T16:15:16","modified_gmt":"2024-02-05T08:15:16","slug":"gold-savings-maybank-gold-account","status":"publish","type":"post","link":"https:\/\/www.imoney.my\/articles\/gold-savings-maybank-gold-account","title":{"rendered":"Is Gold Better For Savings Instead Of Cash?"},"content":{"rendered":"

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People like to turn to gold as savings when times are tough. Is this a good idea? After all, buying and keeping gold jewelry for a rainy day is widely practised in Malaysia. In this day and age, it\u2019s much easier to invest in gold as a form of savings. If you\u2019re looking for something that has low risk as a form of wealth protection from a turbulent economy, gold is your answer. Meanwhile seasoned investors can make use of modern banking facilities to buy, store and convert gold safely.<\/p>\n

<\/span>Why gold instead of cash?<\/span><\/h2>\n

The main challenge you face when trying to save money is that inflation exists. Over time, the buying power of your currency decreases – a cup of teh tarik used to cost RM0.20 in the 80s, but you can now expect to pay RM1.50 for the same drink. While inflation is an important factor for economic growth, too much can cause prices of household goods to skyrocket. When this happens, what you can buy with your savings decreases – which means that the value of the money you put in savings has dropped just because it was sitting in your savings account.<\/p>\n\n\n\n\n\t\n\n\t\n\t\n\t
<\/td>Consumer Price Index (Inflation rate)<\/th>Gold value returns<\/th>\n<\/tr>\n<\/thead>\n
2011<\/td>2.4%<\/td>13%<\/td>\n<\/tr>\n
2015<\/td>4.2%<\/td>9.7%<\/td>\n<\/tr>\n
2020<\/td>-1.8%<\/td>23%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n

*Consumer Price Index (CPI) source: Bank Negara Malaysia<\/a><\/sup><\/p>\n

As the table above shows, the annual returns on gold significantly beat the annual inflation rate. Especially when the economy shows signs of slowing down, as seen by the dip in the CPI throughout 2020.<\/p>\n

<\/span>Gold as an investment<\/span><\/h2>\n

Gold is seen as a good alternative to savings during economic uncertainties, as investors tend to reduce positions in higher-risk investments such as stocks. \"\"<\/p>\n

Source: Goldprice.org<\/a> — as at May 25, 2021.<\/sup><\/p>\n

Over the past 20 years, gold price has increased 6-fold compared to 2-fold capital appreciation in real estate. Imagine how much you would have profited had you invested then! Benefits of gold investment:<\/p>\n