If you go to the bank and buy a 100-gram gold bar every year, will this keep its value?

If you buy gold, you are prepared to hold it for a long time, and it can indeed play a role in preserving value. If you are aiming for short-term investment income, then buying 100 grams of gold every year is really a waste!

“Jewelry in prosperous times, gold in troubled times.” From ancient times to the present, gold has been deeply loved by ordinary people. Even countries will reserve large amounts of gold to stabilize currency and credit. As an international hard currency, gold itself is valuable, but investment must be cautious.

Although the price of gold is unified around the world, it often fluctuates. For example, the price of gold in 2021 has been on a downward trend. From close to 400 yuan/gram at the beginning of the year, it has dropped to around 367 yuan/gram now. If you bought 100 grams of gold at the beginning of the year, it would cost about 40,000 yuan. If it were sold now, it would only be worth about 36,700 yuan. You have lost more than three thousand yuan this time.

If you deposit this 40,000 yuan in the bank, even if you deposit it regularly for one year, the interest will only be 2.1%, which is still more than 800 yuan in interest. And in the past ten years, the price of gold has fluctuated wildly. In 2011, the price was around 350 yuan/gram, and then it kept falling. By about 2015, the price of gold will be only more than 200 yuan/gram.

Then from 2015 to 20, the price of gold rose all the way, reaching a peak of nearly 470 yuan/gram. From 20 years to now, the price of gold has been on a downward trend. Therefore, if you buy gold, you will most likely lose money within three to five years. In terms of investment income, buying gold is far less cost-effective than depositing money in the bank.

We ordinary people only recognize that gold is golden. We know nothing about the specific content, and there is no way to verify it. If the physical gold you buy is not very pure, it will easily become "hairy" and "rusty". In addition, some informal investment institutions are also prone to gold substitutes.

You bought hundreds of thousands of gold, and after keeping it at home for more than ten years, you finally discovered that it was gold-plated! It has a layer of gold on the outside and brass on the inside. Even if you defend your rights, you still have to spend a lot of energy and financial resources, and the gains outweigh the losses. Therefore, you must be cautious when buying physical gold. It is best to buy from a large formal institution.

If you can hold gold for more than ten years, you will basically not lose money. And no matter what unexpected changes occur in society, the value of gold will always remain. Currency may become a piece of waste paper. But physical gold will always have value.