Gold has always been considered as valuable as any national currency that could be easily used in trades on the stock market. But there is a big difference between owning an amount of money or a stock of gold in a bank and in order for people to make the right investment, this distinction must be clear. First of all, the gold held in a bank can be submitted to all kinds of transactions, according to the customer’s needs.
Everyone that owns a sum of money wants to keep it safe and, if possible, to increase it. People see banks as the facilitators of these things to happen. The client makes a cash deposit and the bank submits this money to various transactions that are expected to end in profit. This new income is divided between the bank and the owner of the deposit. For some people, all these actions are put under the question mark simply because they do not believe that a company is willing to keep your money safe and give you extra cash for the work they perform themselves.
All these transactions present themselves as a business. And as we all know, each dealings has their own risk to be taken. In case the bank decides to invest your capital wrongfully, you may not receive your money back. Nevertheless, these circumstances are very unlikely to happen. The best way to hold gold in banks is to sign a policy that allows the owner to withdraw it whenever he pleases. Also, having this type of gold deposit, the bank will not be able to lend it further to anyone.
Gold surely surpasses cash due to the fact that everyone knows its value, no matter of the part of the world they find themselves. In what money is concerned, there were situations when the seller did not accept it because it didn’t conform. Not to mention the fact that gold is scarce compared to money and this fact makes it more valuable. While money is printed everywhere and at any time, gold takes up to 30 years to be extracted and manufactured.
Due to the fact that gold is scarce, it subclasses money, which can be printed in huge amounts. Also, if we are to refer to the rare properties that gold has, we can mention its durability in time, its resistance to destruction and also the fact that it can be stored without any effort.
If you read gold news, you will know what are the best investments of the time.
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