Gold more attractive than bank savings – Customers changing their investment priorities

Low interest rates on savings and the financial uncertainty arising from Brexit have led many customers to change their investment priorities and to invest their capital into gold.

In Serbia, there are several companies which deal in the sale of the so-called investment gold, i.e. coins and bars, popularly known as gold bullions. One of the companies says that the populace is becoming more interested due to the said crisis factors.

The Belgrade-based company Insignitus Gold offers investment gold in the face value of one, five, ten, 20, 50, 100, 250 and 1,000 grams. The largest one, then, is a 1 kg bullion, which has the proportions of a mobile phone. The gold can be kept at the company, in a house safe or a bank safe.

Savings in gold are said to maintain the real value of the capital. For example, the first Ford car from 1915 cost USD 370, and the new Ford Mondeo costs USD 24,000. The value is 18 ounces of gold, or 540 grams, both then and now.

Gold maintains the value, but, formally, there are no interest rates. Those who sell gold, however, say that this isn’t true.

– Due to the financial uncertainty in the world, the price of gold has increased by 24% since the beginning of the year, with an 11% increase since June alone. Isn’t that a six-month interest rate of 24%? – notes Ljuba Jakic, the director of the Inisgnitus Gold, and adds that the price of gold is heading towards its historical peak.

The current price of raw gold in stock exchanges throughout the world is EUR 38.53 per gram, whereas the price of gold in bars and coins is EUR 51 per gram. This kind of investment isn’t taxed by the state like foreign currency savings are.

gold

savings

Ljuba Jakic

price of gold

Insignitus Gold

interest rates on savings

coins

bars

bullions