Saving in Gold vs. Saving in Cash

We all know that growing your nest egg is critical for any successful long-term investment plan. We also know that our choices of investment products will make significant differences to our final balance. But how much difference does it make?

In the Graph below, we have plotted the outcome that an everyday Australian would have achieved had they started a $1000 a month saving plan back in 1999, and chosen to out $500 a month into physical gold and $5000 a month into bank deposits.

Over this almost 25-year period, the individual saver would have invested just over $300,000 evenly split across both gold and bank deposits.

The money invested in the bank deposits woul have increased due to the interest payments, with the saver accruing a balance of $229,000 by the end of 2022. The total interest earned would have come to almost $80,000.

While that is not a bad return, the chart below shows that the gold accumulated would be worth almost $600,000 based on an end 2024 gold price just below AUD 4,200 per troy ounce. This demonstrates the power of saving in gold.