Are We Losing Money By Storing Money in the Bank? Go For Gold!

(Digital Money World) As my good friend, Mark Herpel would say, “Buy Gold”. We know gold has hit its new height at $1,000 an ounce and holds strongly above the levelwith the declining dollar, the aggressive 0.25 point cuts from the Fed on Interest Rates and rising mortgage situations, company crisis (Bear Stearns) in the US.

Is It the Time to Still Buy Gold Given the Fact that it Has Risen Aggressively For the Past 6 Months?

I’m no expert with charts, or even history of gold. Even with an aggressive strong valued dollar, I believe one should always get some gold for diversification. Gold has always been a very good inflation defense to dollar. Most of the time, whenever dollar falls in value, gold will go up and vice versal, which makes it really hard for you to get more gold at the right time. With the weak dollar now, I would choose to store gold to combat the weak dollar as a form of diversification.

Gold is safe haven. True most of the time.

So Is It True That We’re Losing Money By Putting Savings in Banks?

Sad to say, yes would be the answer. With how the dollar is facing its toughest challenge since World War 2 as quoted by Alan Greenspan (ah that man again), you’re losing money if your savings account if the value is denominated by the dollar. On the other hand, people who are holding onto gold is enjoying a good ride in terms of intrinsic and a versus value compared to the dollar.

Dr. Steve wrote a good article on Are Your Bank Deposits Now At Risk with great tips on diversifying your bank savings with a maximum of $100,000 per account on banks that are heavily regulated by the Fed since you’re protected by them at a maximum of $100,000 per bank.

Though being offered this kind of protection, we’re still at risk of eroding value of the dollar at this very point.

Buying Gold is Tough, Should We Buy Solid Gold to Keep?

Yes you can choose to purchase gold in its glorious form if you have no problems in keeping them. Liquidating them wouldn’t be tough with many gold dealers that deal with gold and even scrap gold. Yes, you can even liquidate your rings, jeweleries that contains gold and sell them for money.

Make sure if you’re purchasing gold bars or ingots, look out for its hallmark on its purity form. You can check out Monex on the bullion and coin forms that they sell.

Solid Gold Hmm, How About I Purchase Gold from a Vault and Let them Store It For Me?

No problem. In fact, if you’re familiar with Digital Gold Currency (DGC), there are a couple of alternatives online for you to choose from. These gold vendors simply allow you to purchase gold online from them by letting you wire money from your bank account.

The value of your gold would be reflected on your account, which should update pretty much often almost daily since gold is a commodity that’s being traded from Mondays to Fridays and Sundays in some places. And should you choose to liquidate your account, you have choices like using a exchanger, or maybe even selling back to the vendor who actually sold you the gold.

Most online DGCs have proper maintained and insured vaults that are being audited on a very regular basis so you would know how much gold is exactly sitting there. There are those that allow you to even bail your gold. I’m segregating two types of DGCs so you’ll understand it pretty clearly.