If you’ve been looking for a savings scheme that delivers better growth than a bank deposit without the volatility of the sharemarket, GoldSaver could be just the ticket.
The latest offering from New Zealand Gold Merchants, one of New Zealand’s most established gold manufacturing and trading firms, lets you purchase gold in weekly, fortnightly or monthly amounts from as little as $50 at a time.
GoldSaver is a modern and accessible alternative to traditional bank accounts in which you own a physical stake in gold held in New Zealand Gold Merchants secure vaults, and can keep tabs on your transaction history and the current value of your gold via a handy GoldSaver tab on your phone or computer.
The idea underpinning GoldSaver was to democratise gold ownership by making it easy for savers to accumulate gold via easy, automated direct debit payments, says Tony Coleman, owner and managing director of New Zealand Gold Merchants.
“We have products aimed at investors who are typically buying or selling tens of thousands of dollars’ worth of physical gold at a time,” he explains.
“GoldSaver lets you buy just a fraction of a gram of gold at a time, gradually accumulating a gold holding that is likely to deliver a decent yield over the long term.”
The asset of choice for millennia
A GoldSaver account is a pooled account, giving you the power to grow your wealth as part of a larger, diversified pool of gold while maintaining an individual share of real gold, which is sustainably extracted from gold fields located on the West Coast of the South Island.
It can offer advantages over company shares or simply parking money in a savings account with a bank, as most Kiwi savers do. For thousands of years, gold has been a reliable store of value and a hedge against the loss of buying power in uncertain times.
As Coleman points out, over the past 20 years the value of gold in NZD has risen by around 748%, and has increased by approximately 50% in the past year alone.
“The key driver pushing the gold price up is the devaluing of the US dollar and other currencies, governments have printed money in eye-watering amounts,” says Coleman.
In 2020 alone, the US Government injected USD $6 trillion into stimulus programmes in a bid to rescue the faltering economy. Coleman says that, in response to ongoing currency devaluation and global economic risks, central banks – particularly in Asia – have been increasing their gold reserves, driving up both demand and prices.
The price of gold also spikes in times of geopolitical turmoil, which is currently being fuelled by wars in Ukraine and the Middle East and rising tension between the US and China.
Coleman stresses that past performance is not a certain predictor of future returns. But gold, once an investment class out of reach of the masses, is a great asset to own with a view to saving over the long term.
More liquid than other assets
GoldSaver users don’t receive interest on their fully-insured deposits, but benefit from any appreciation in the value of the gold held on their behalf. It’s not just gold either. You can buy silver via GoldSaver as well.
The liquidity of precious metals is unparalleled compared to other asset classes like property and artworks. With GoldSaver, when it’s time to cash in your gold deposits, you simply tap a button and sell directly to New Zealand Gold Merchants, or convert your savings into physical gold or silver and hold them in your hands.
The fees are competitive compared to share trading platform transaction costs and term deposit break fees.
“The idea is to start small, but grow something big through regular micro payments. You can adjust or skip a payment at any time. You are in control,” says Coleman.
GoldSaver features sub-accounts, so adults aged 18 or older can control accounts on behalf of minors. Parents can start gold and silver savings accounts for their children and watch the precious metal accumulate in value as their kids grow up.
“Investing in shares is a daunting prospect for many novice Kiwi investors. Bank savings accounts deliver safe but mediocre returns,” says Coleman.
“With GoldSaver you can incrementally invest in an asset that has a proven track record of performing well with all the flexibility of a using a modern asset-trading system you can set up in less than five minutes.”
If you are new to gold investment and concern yourself about risk, GoldSaver could be perfect as it allows a small low risk entry point and allows you to build confidence over time.
To find out more about GoldSaver and open an account, visit gogold.co.nz/goldsaver