Inflation: Expert compares investing versus saving
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Many Britons may be looking for ways to make their money go further in the new tax year, and try alternatives to traditional currencies as inflation has “eaten away at their savings”. While cryptocurrencies continue to prove controversial due to the lack of regulation and uncertainty, people may wish to consider the option of gold.
As the purchasing power of the pound has been eroded in recent months, gold grows more popular as the value of it has been steadily rising.
Express.co.uk spoke exclusively to Cameron Parry, the CEO of Tally. Britons with a Tally account can instantly convert their gold shares at wholesale prices.
If the price of gold rises relative to pound sterling, so does the value of someone’s account — and in turn, people will now have more to spend down the shops.
Mr Parry said: “People want to make their money go further, but with inflation at a 30-year high they are finding their budgets squeezed like never before.
“Everyone is searching for a magic bullet to combat the deepening cost of living crisis, and while most people still find it hard to trust or transact in crypto, gold has been around forever and consequently it’s easier for the ordinary person to understand.
“As the new tax year begins, an everyday account and debit card tied to gold is a far better option than a bank account that sees the value of your pounds evaporating before your very eyes.”
People now have the option of paying for their groceries and daily essentials using an everyday account and debit card anchored to gold.
As the value of gold has been steadily rising, the gold one has can go much further when it’s exchanged for goods and services that are still priced in pounds and pence.
Over the last three months the price of gold has grown by 11 percent. This is almost double the current 6.2 percent rate of inflation.
Of course, the price of gold can go up or down so people should be aware before investing in it.
With gold being such a different currency, many Britons may be sceptical about whether it is a practical option to consider when trying to make their money go further.
When discussing gold for the everyday person, Antonia Medlicott, financial editor at InvestingReviews.co.uk reminded Britons to never “put all your eggs in one basket”.
She explained that the acceleration of digital technologies means that gold is something now that can be used for day to day transactions.
She said: “Gold is traditionally seen as a store of wealth rather than something to use for your day-to-day transactions, but the acceleration of digital technologies is changing all that.
“Crypto sceptics looking for an alternative to the pound might find a debit card tied to gold more appealing because gold is an asset which has stood the test of time and isn’t just some passing fad.
“However, people shouldn’t lose sight of the fact that the value of gold, like any asset, can go up and down.
“This means that potentially it might not buy as many groceries in the future as it does today.
“It’s never a good idea to put all your eggs in one basket.
“So including gold as part of a wider diversified portfolio is probably the best strategy for someone looking for a hedge against inflation.”
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