We have all heard someone who does not trust banks say that “savings are better under the mattress.” But this is not the best solution for our money, for a very simple reason: the loss of its purchasing power.
What does this mean? Let’s look at an example: in 2002, the euro came into force as the single currency of the European monetary union. In those days, a cart with a week’s worth of groceries in a supermarket cost us an amount that, today, only allows us a small purchase for two or three days. That is the effect caused by the loss of purchasing power of money.
The question is: is there a way to prevent this from happening? Let’s see another example: if at the beginning of that same year we had invested 1,000 euros in gold (which was trading at around 308 euros per ounce), at the beginning of 2018, we would have no less than 3,537 euros, 3.5 times more.
Invest in gold only for the rich?
As Gabriel Ruiz explained to those attending his conference, “investment in gold is no longer the patrimony of the richest. Before, only large ingots were made, weighing more than one kilo, which was unaffordable for most pockets. Now it is possible to start investing in ingots from 1 gram, certified and with the Good Delivery seal, as a way of preparing for retirement”.
This investment in small gold bars and coins is common in countries like Germany, France, or Italy (other large gold hoarders for their national reserves).
The United States deserves special mention, as it has the largest gold reserves (8,133.5 tons, representing almost 75% of its foreign currency reserves). In this country, for many years, there have been retirement plans that invest 100% in precious metals and benefit from significant revaluations.
Round the calculation of the retirement pension with gold
In a context where the Social Security Reserve Fund has seen its resources depleted in recent years, an imminent loss of pensioners’ purchasing power is envisioned.
The pension reform introduced in 2013, the decrease in contributions, and the increase in life expectancy paint an uncertain outlook for those who are waiting for their well-deserved pension. Against this background, saving in gold emerges as a convenient and profitable option in the midst of the crisis.
Current situation of the fund for pensioners
The discussion on the reform focuses on the decoupling that it poses between the growth of the CPI and the revaluation of pensions, which poses a decline in purchasing power.
The fact is that the Reserve Fund, which was created in the boom years to provide support in times of tightness, has been emptying since the start of the crisis, which can be summed up as a situation where there has been less income and more expenses. This has occurred in a scenario with 9 million pensioners, in combination with a greater number of unemployed, an aging population, and a complex political situation.
Thus, while decisions are made and measures are adopted, several specialists have recommended promoting savings and investment as a form of complementary private contribution, aimed at ensuring a stable retirement regardless of economic crises.
Thus, saving in physical gold is a safe way to protect savings and diversify investments in the midst of marked uncertainty about the economic future of retirees. Thus, the security of this can be reinforced with the acquisition of gold bars or by investing in gold coins.
