The impact on the citizens' standard of living in Croatia is getting increasingly evident each day. Inflation is growing uncontrollably, prices are skyrocketing, while value of money is dropping. The massive monetary stimulus by central banks around the world to increase the liquidity of their financial systems has led to inflation that reduces the real purchasing power of money. Therefore, for the same amount, we can buy less and less goods in the store, not to mention the prices of fuel and other energy sources. The annual inflation rate in the Eurozone jumped to 5.8 percent, reaching a new high, while in the US, it is the highest in the last 40 years!
Inflation mostly affects those who own cash or money. However, it negatively affects all financial instruments with a guaranteed fixed yield, such as savings or bonds. And, as CNB data shows, saving in a bank is a favorite among our citizens. Last year, savings in banks increased by almost 3 billion €, so now citizens have over 32 billion euros in them.
The main reasons why people save at the bank are simplicity and habits. Given that some other options seem complicated or too risky, people opt for things that are within reach. However, the interest on term savings in banks is very low, and tax is paid on this and on the profits generated by investing in investment funds and stocks. Therefore, keeping savings in the bank can be an extremely risky option. Not only because of war events and the possibility of bankruptcy. Inflation devalues time deposits and bank savings, meaning your money is worth less and less. Are there wiser options for saving or investing?
There is a Solution: Investing in Gold Protects Your Savings
If you want to avoid a decline in the value of your assets, it is crucial to invest in what will preserve value in these volatile times. Gold is the best protection of assets against a decline in value over time. Due to its characteristics, and its past and future expectations based on it, it is an excellent guardian of property value. You can invest in gold in several ways, and buying physical gold is considered to be the best option. This type of investment is available to a large number of citizens, not only large investors. The market offers a wide range of products - from 1-gram bars, through popular gold coins, to bars weighing 1 kilogram.
Buying investment gold is much more profitable than keeping money in the bank or at home. Namely, in the last 50 years, the price of gold increased at an average rate of over 8% per year. This is an increase in value and more than sufficient compensation for the negative effects of inflation. It is also important to note that gold is very liquid. This means that it can be turned into money very quickly if needed. Therefore, it is not surprising that the demand for this precious metal is increasing. More and more people understand the value of owning gold, and by investing in gold, they intelligently diversify their assets.
Auro Domus – Your partner in investing / Your partner for gold
When investing in gold, it is important to find the right partner. Auro Domus is the largest company in the trading of precious metals in Croatia, based on a hundred-year tradition related to gold. In a vast network of branches throughout Croatia, you can purchase investment gold or exchange your old gold for one of the investment products with a guaranteed best price. The purchasing process is as simple as possible, both in the stores and through the web shop, where you can shop from the comfort of your home.
Ask for advice on the free phone number 0800/7372 and find out everything you need to know about buying gold. Invest wisely - invest in gold!
*the text is made for informational purposes and should not be considered as financial advice.
Auro Domus, Unsplash.com, Pexels.com