Saving in Gold vs. Saving in Cash

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

In the graph shown on the opposite page, 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 toput $500 a month into physical gold and $500 a month into bank deposits.

Over this 25-year period, the individual saver would have invested just over $310,000, evenly split across both gold and bank deposits.

The money invested in the bank deposits would have increased due to the interest payments, with the saver accruing a balance of just over $185,000 by the end of 2025. The total interest earned would have also come to almost $29,000.

While that is not a bad return, the chart shows that the gold accumulated would be worth just over $920,000 based on an end 2025 gold price just below AUD 6,450 per troy ounce. This demonstrates the power of saving in gold.