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You Can Hold Gold in Your Bank Account

By Dr. Steve Sjuggerud
Wednesday, May 26, 2010

Your cash in the bank earns you next to nothing... Meanwhile, the government has the ability to print all the money it wants to.
 
In short, your wealth in the bank is steadily eroding. Your dollar is losing purchasing power year after year.
 
What can you do to protect your savings? My friend Frank Trotter of EverBank has an innovative solution...
 
Hold some of your savings at the bank in gold.
 
I had dinner with Frank on Monday. He explained to me that, through EverBank's "Metals Select Gold" accounts, you can keep a portion of your savings at the bank in gold, instead of in dollars.
 
"So, Frank... I could keep my everyday money in my regular checking account... and then I could keep my longer-term savings split between a regular savings account and gold?"
 
"Yes."
 
"But what if I need to convert my gold at the bank into cash to pay for a big expense?"
 
"No problem."
 
How long will it take to get my cash? A day or two?"
 
"Yes."
 
"OK. How do you hold my gold?"
 
"However you want. You can have gold with your name on it, so to speak, which has a storage fee. Or we can hold it for you as unallocated gold, where there's no storage fee."
 
"Will you send me my gold if I want it?"
 
"Absolutely. It's your gold."
 
I hadn't heard of U.S. banks offering gold as an account option. But EverBank does. And it's a pretty convenient way to hold gold...
 
Imagine your house needs a new roof, and you need to get the money out of savings. If your savings are in gold coins in a safe-deposit box, you have a serious hassle...
 
You have to go to your bank and get your gold coins. Then you have to find somebody to buy them from you at close to full price... Either take them to a local dealer or mail them off to a reputable dealer. You're taking a bit of a risk, having them on you or putting them in the mail. Then you have to wait on a check. Then you deposit that check in your bank. Then let it clear. Then you can write a check for a new roof. What a pain!
 
With your gold at EverBank, you tell them you need to convert your gold to cash and move that cash to your checking account. It'll take a day or two from when you say "sell my gold." Then you can write that check for the roof.
 
Now, if you hold your account in gold, its value is not guaranteed by the FDIC. Your checking and savings accounts are, of course. But if the price of gold goes down, the value of your gold account goes down – the FDIC isn't going to help you out there.
 
But with the bank paying next-to-no interest – and the government printing money at will – it makes sense to hold a portion of your savings in gold. Holding gold in your bank account keeps your life simple. EverBank offers a hassle-free way to do it. For more details, click here.
 
Good investing,
 
Steve




Further Reading:

Yesterday, Tom Dyson told readers to protect themselves by raising as much cash as they can. The question is, what do you do with it once you've got it?
 
Well, check out Steve's essay above. Also, Tom went through a couple more ideas here: My Favorite Ways to Hold Cash. Porter Stansberry described a super-simple, super-safe "hedged" cash position here: The Most Important Chart in the World Right Now. And our friend Joel Nagel covered the basics of moving cash overseas here: The Easiest Way to Open a Foreign Bank Account.

Market Notes


AMAZING STRENGTH IN THE "CONTRARIAN'S COMMODITY"

In yesterday's edition, we wrote about the major new low in the CRB Index, a widely followed gauge of commodity prices. The benchmark raw materials index is trading at its lowest levels since July 2009.
 
One of the major "drags" on this index is crude oil. Just weeks ago, the black stuff traded for $88 per barrel. It now goes for less than $70 per barrel... a stupendous short-term decline of more than 20%. Gold, copper, and platinum also plunged.
 
The raw material you won't find on the list of losers is one we've been writing about a lot lately: natural gas. As you can see from today's chart, the clean fuel has actually gained a bit over the past few weeks.
 
This bullish action from the contrarian's commodity demonstrates one of the greatest trading techniques known to man: Go long assets after they've been "blown out" and left for dead. This allows you to buy value and safety. In "natty's" case, the fuel has declined from $12 per thousand cubic feet in 2008 to its current price of $4. When the commodity selloff hit, gas was already lying left for dead in the corner. It simply said, "I'm already down and out. I can't lose anymore... Go pick on the other guys."

Natural gas actually gained a bit during the commodity selloff

In The Daily Crux



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