Is it better to buy gold or save in the bank?

Buying gold to store for profit or to accumulate is a financial option chosen by many people. Based on the fluctuations of gold, buyers will make decisions and choose the right time to sell gold to gain profit from the difference in gold prices.

There are times when the price of gold continuously increases sharply, bringing high profits. However, to invest in gold profitably, you need knowledge, the ability to analyze the market and choose the right time to buy.

People in Ho Chi Minh City go to buy gold. (Photo: Hoang Tho)

Accordingly, investing in gold has high liquidity, people can easily buy and sell, and convert into cash.

However, buying gold for storage needs to be kept in a safe place, in a cabinet or safe or deposited in a bank to avoid risks. In addition, if the gold price increases sharply, it means that the domestic currency will lose value and there is a high risk of inflation.

Moreover, the gap between domestic and world gold prices is currently very large. This makes it difficult for buyers to grasp the trend, increasing the risk when buying. The difference between buying and selling prices of domestic gold is also at a high level, at times reaching up to 2.5 million VND/tael.

Besides buying gold, saving is also a form of investment with high profitability and is chosen by many people.

How this method works is that the depositor brings money to the bank for a certain period (usually 3 months, 6 months, 9 months, 12 months...) with a specific interest rate. After the period ends, the bank will return the principal amount plus the accrued interest to the depositor.

The advantages of using idle money for savings are: High security and safety, no worries about theft like when leaving money at home; Low risk, suitable for those who do not like to take risks or invest "surfing"; There are many terms and interest payment methods to choose from to suit your needs;

The longer the savings term, the higher the interest rate, the more stable the profit, suitable for many people, including those who do not have experience in monitoring the socio- economic situation or market fluctuations.

However, saving money is not suitable for investors who like risks and does not have high interest rates.

At the same time, depositing savings will limit the ability to rotate capital. If withdrawn before maturity, people will have to pay a non-term interest rate of only about 0.1 - 0.2%.

So should I buy gold or save money?

Buying gold or saving for profit depends on the needs and finances of each individual.

If you are a perfectionist, like safety and do not have much time to watch the daily fluctuations in the market, then saving is a decision for you. The deposit period and interest rate also need to be considered and weighed according to personal financial needs. The amount of money deposited should also ensure financial autonomy for the individual.

Saving money in a bank with a suitable interest rate will give you a steady cash flow every month. The security and reputation of the bank will never make you worry about your investment.

For those who like to take risks, "take big risks" or like to challenge themselves in the market, buying gold for storage is the right path for you.

However, no matter which investment method you choose, you should carefully study economic and legal knowledge to avoid unfortunate risks.

Truong Phong (Synthesis)

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