With talk of gold reaching $7,000 as soon as 2030…
It’s a good time to be putting money in the yellow metal.
And with traditional banks being given the green light to charge savers whatever they fancy…
It’s also a good time to seek alternative ways of storing your money.
Enter TallyMoney.
In part one of this piece, we explored these two reasons to start saving in gold with us. But we’re not done yet. The truth is there are many more timely reasons to bypass the traditional banks and take back control of your cash.
Here are three more of the most pressing…
Reason #3:
Global uncertainty is through the roof
Global uncertainty is through the roof
Sure, the days of Covid-19 (when we were unsure whether we’d even be allowed out of the house) may be behind us…but we still live in tentative times. Just take a look at the graph below from the International Monetary Fund:
The yellow bars covering pandemic uncertainty have passed. But it’s been replaced by substantial red bars relating to ongoing global tensions and economic turbulence. The IMF’s official designation is that global uncertainty is “exceptional.”
The problem with this is that uncertainty leads to global market volatility. This can have a wildly negative impact on the value of our savings – whether it’s crashing stock prices, tumbling property valuations, or even threats to the cash you hold in the bank (more on this in a moment).
Storing your wealth in tally, each representing a milligram of physical gold, potentially offers something much safer right now. Why? because gold behaves differently to everything else during uncertain times.
Rather than the heavy depreciation that hampers many assets, gold tends to retain its value because it’s real and supply is finite. You can’t print more of it — which is why it’s known as the ultimate “safe haven” asset.
In fact, with gold buying typically increasing in times of crisis (as we’re seeing now), your tally could grow in value while other assets are falling. And that’s not all…
Reason #4: Banks are taking far too much risk with customers’ money
Reason #4: Banks are taking far too much risk with customers’ money
The UK Treasury recently outlined a new mechanism to improve the management of small bank failures.
This is great. We’re all for anything that limits the risk of the public losing their money. But the fact we even need this mechanism – let alone to improve it – is concerning.
What makes it worse is these closures are usually at least in part the fault of the bank itself. And you can blame what’s known as the fractional reserve system for that. It means banks are effectively allowed to do what they want with the vast majority of your money once it’s under their control.
If the risks they take go well? They keep the profits, and you get none. If they don’t? You’re the one left holding the bag if they close, potentially unable to retrieve any funds beyond the £85,000 guaranteed by the Financial Services Compensation Scheme.
That doesn’t seem fair.
And it makes the prospect of banks passing down their increasing regulatory fees – as we covered in Part 1 – even more infuriating.
It’s one of the main reasons we started TallyMoney.
We don’t lend out, leverage, or invest your wealth without your knowledge. Instead, we store it in gold – specifically, gold held in a secure vault in Zurich. And, in the unlikely event anything ever happened to us, your gold would be promptly sold so its fiat value can be returned.
With TallyMoney, you’re 100% in charge of your savings 100% of the time.
Reason #5: High inflation isn’t going away any time soon
Reason #5: High inflation isn’t going away any time soon
The final reason you should think about using TallyMoney now more than ever is that fact that inflation just isn’t going away.
It may no longer be in excess of 10%, but it is still higher than Bank of England’s target rate of 2%.
What’s more, our central bank believes this will broadly remain the case at least into next year.
The problem with this is it is accelerating the rate at which your cash in the bank is losing its purchasing power.
Just look at the image below:
It shows how £100 in the year 2000 is now worth just £46.04.
The truth is: declining purchasing power will ALWAYS be an issue as long as the rate of inflation is greater than the rate of interest your bank is paying back to you. And given traditional banks very recently held on to the eleventh hour to pass down interest rate hikes to consumers…we’re not particularly optimistic on that front.
Storing your wealth in tally can overcome this.
The graph below shows the value of gold from 2000 to the present day.
It’s pretty clear that, rather than declining in value, the precious metal has been steadily increasing – from £187 an ounce to its current £1,855 an ounce. That’s an increase of nearly 900%.
It’s why, as well as being known as the ultimate “safe haven” asset, gold is also known as the ultimate hedge against inflation. Put simply… when the value of cash is being eroded, gold tends to continue to rise. And because each unit of tally represents one milligram of gold, the value of your savings will go up too.
So, there you have it…
Record gold prices. The traditional free banking model coming to an end. Exceptional global uncertainty. Growing risk of bank failure. Sticky, elevated inflation… five very real reasons why right now is a great time to store at least some of your savings in tally.
