In the past few thousand years, gold has been used as currency-usually replaced with cash-with some product characteristics, so investing in gold is very similar to investing in currency.
Now, as a currency or commodity, some of the points listed below will clear almost all common gold confusions when evaluating with cash.
Gold Vs Mutual Fund
What most people don’t realize is that when it comes to assessing gold cash, there are basically two different ways to own gold in the bank. One is “allocated gold and unallocated gold. With this definition and terminology, technically speaking, the money deposited in the bank is unallocated gold. However, compared now, when people talk about gold, deposits and allocated gold They often think of the gold icon sitting in the tomb, doing nothing and not collecting any returns. The allocated gold will never be rented out.
One of the main reasons we deposit cash in the bank is that it earns interest. The greater the risk, the greater the return must be, according to modern financial theory tells us. The driving force of this interest return is that the deposit service lends you the cash you deposit-which basically means you lend money to the bank-they shell with interest. With a “business form”, you basically pose a threat to the creditworthiness of the bank — the bank makes excellent decisions about whom to lend the money to.
Does It Still Pay to Invest in Gold?
The extra funds of bank loans put the wealth in them with additional risks-banks usually loan 11 times more than their total deposits. Now, this is similar to unallocated gold, which is lent to third parties, often more than they are actually in the vault, many times-this earns a rental interest rate.
Unlike cash, gold is always received anywhere, so you can get cash for gold everywhere. This will not change, as proven by thousands of years of business survival. The subject of your bill is “old banknotes” — you can go to several countries — when you get there, you can expect your gold to be still gold.
In every respect, gold is better than cash. No wonder it has been an expense for thousands of years.