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What currency should you keep your money in?

2016-06-10 00:00:00

If you have a large amount, but you do not know which currency is better to keep money or how to invest it profitably, then in this article we will try to answer all the questions.

It used to be easier: bought gold coins, a chest, and all you need to take care of is the safety of the chest. Todays situation is very different from medieval methods of keeping money. There are many currencies. There are more than enough metals that are also profitable to invest in. And then there is digital gold called Bitcoin, which is also extremely interesting in terms of investments. What is the best way to keep money? To answer this question, you need to analyze the trends in the financial market over the past few years, study the forecasts of leading financial analysts and, of course, assess the political situation in the world.

 

Store money in national currency (rubles)

It is difficult to talk about rubles as a reliable currency for keeping your savings. At least this is the opinion of the majority of Russians. Against the backdrop of the economic downturn and the decline in the price of the national currency, it is really difficult to believe that the ruble is reliable for long-term savings. What currency should the money be kept in if the ruble is unstable?

Before dismissing the concept of a deposit in rubles, it is first worth looking at the processes taking place in the countrys economy. What is the reason for the decline in the price of the ruble? Sanctions from foreign countries, a decline in oil prices, a decrease in the export of goods are the main reasons. There are many more factors influencing the ruble price, but they are not so noticeable.

Russian banks offer favorable interest rates for deposits in national currency. Interest rates in some banks can go up to 12% per annum, which is a lot. Compared with deposits in foreign currency, the rate is much lower.

Should you entrust your savings to Russian banks? Many financial experts believe it is worth it. After all, it is better to keep money in “native” currency, and this is not about patriotism. At some point, the ruble will still start to rise in price and strengthen its position in relation to foreign currencies. As you know, todays oil price is not profitable even for its producers, which means that the time will come when it will start to rise in price and return to natural indicators. The same goes for sanctions. The moment is not far off when EU companies will begin to ignore the bans on trade with the Russian Federation. Given these optimistic forecasts, we can conclude that keeping money in rubles is possible and necessary. But its up to the investor, as always, to decide.

 

Keeping money in dollars

If you ask an ordinary middle-aged passer-by what is the best way to keep money today, then, most likely, the word "dollars" will sound. It is the most widely used currency in the world. In almost every country and on every continent, the dollar has weight and can be used as a means of payment. But times are changing, and what used to seem reliable can be flawed and fragile today.

The United States is trying to maintain its currency at the same level, but every year it becomes more difficult to do this. Its all about the governments huge debt to independent financial institutions. At the moment, the national debt is about $ 20 trillion. How this money will be returned is unknown. All industry has been transferred to China, Japan and Korea. There is simply no gold and foreign exchange reserve that would support the currency. Investments and other injections into the economy are also not expected. “The dollar is doomed to a complete depreciation” - this is the official statement of representatives of the American financial sector. In what currency should the money be kept, if not in dollars? There is always a way out.

 

Deposits in euros

It is difficult to draw conclusions about the currency of the European Union. On the one hand, it is more expensive than the dollar. On the other hand, the European Union itself is not in the best position because of the current events. Is it worth keeping money in euros? Complex issue. Much depends on the political situation between the countries of the European Union. But if a person really wants to understand in which currency it is better to keep money - in dollars, rubles or euros, then an integrated and analytical approach is needed. According to some estimates of leading experts in the field of financial market forecasting, over time, the euro will decline in value, since the member states of the Eurozone are dissatisfied with the terms of cooperation, and the price of the European currency largely depends on this. In Russia, deposits in euros are not very popular, since there is no trust in this currency.

 

Store money in gold?

The best option today is to invest in gold. It is known that the price of gold is stable and does not depend on external factors, since until recently all currencies were pegged to this noble metal. If you put the question directly: what is the best way to keep money, then the answer is simple - in gold. But there is one problem. Deposits in gold are not supported by all banks, which means that there will be no annual interest rates. The best thing to do is buy a certain amount of gold and store it in a safe place. Fortunately, in the bank you can buy certified gold bars weighing 3, 5 and more grams, depending on the clients capabilities.

Investing in Bitcoins

Bitcoins, or as they are also called - digital gold, are popular today. After their appearance, they literally in 5 years visited Olympus (~ $ 1200 for 1 Bitcoin), and experienced a loud fall ($ 0.5 for 1 Bitcoin), but today their price has stabilized at around $ 450.

Investing in Bitcoins is a risky business. This is the opinion of the opponents of cryptocurrency, but if you listen to its supporters, find out more information about the latest developments with the participation of digital currency, then you begin to think about the reliability and prospects of alternative investment. According to the most conservative estimates, Bitcoin will grow in value, and hardly anyone can interfere with this process.

So, what currency should you keep your money in? At the moment, based on the forecasts of Russian and Western financial analysts, we can conclude that it will be safer to keep money in rubles, gold or Bitcoins, since other currencies do not have a serious basis.