Let us take a look at the current banking industry and also the gold market.
The 30 Largest Banks in the U.S. represents $11 billion dollars of the financial banking industry as of 2011. What we find from this chart is that there is a significant amount of additional revenue from monthly account fees, ranging from $3 to $50 depending on the type of account the customer has signed up for. Financially, bank account holders are losing over $20 to almost $300 a year in fees on top of having to maintain a minimum account balance, all to earn a poor 1.5% average interest on a checking account. For most that interest is actually .5%.
Along with these fees also comes restrictions on account balance to keep the account either open or waive the fee. The required account balances can also range from $10,000 to over $100,000 and may also include other service requirements (I.e. safe deposit box, investment fund account, etc.)
The problem with owning a bank account is not just the restrictions or fees, but that at any time in the course of your account held by the banking institution, they can increase the fee, add other fees or change account requirements without your approval. This activity occurs when federal regulations are passed thus impacting the banking institutions daily business. So in effect, the regulation passes on to the customer with money taken out of the customer’s account. In order for the banking institution to cover additional business practices that they have to perform due to federal regulations getting passed.
A good example of federal regulatory act passing is President Barack Obama in signing the Dodd-Frank Wall Street Reform and Consumer Protection Act into law raising the current standard maximum deposit insurance amount (SMDIA) to $250,000. The response following the passing of this act was investment institutions no longer are insuring investment accounts under FDIC.
Banking Financial Service and Investment Groups will always secure their interest and monies, however, with the instance of Dodd-Frank Wall Street Reform and Consumer Protection Act, at the expense of customer’s account.
Federal reserve practices, government regulations, escalating US National Debt, the flow and value of currency, banking bailouts, all effect bank account cash balances through additional or higher fees, and more banking requirements effecting cash balances.
What other options are there to bank account abuse and gambling on customers hard-earned income? Gold. Gold outside of government sponsored control has much higher security. No regulatory act controlling its performance, and no fees. Not all gold is labelled by governments as we see with U.S. government. There are international global markets that have been in business almost 20 years and are now available to customers world-wide.
A good example we have is Karatbars International (KB). A 17 year old company based in Munich Germany, owns the mine and refinery in Turkey, with storage in Switzerland, is certified by the Swiss Government and is licensed by them for authenticity. The Swiss government checks every batch of gold produced. KB International has a Financial Holding Company owned and operated and directly involved with the company, and the product is on the London Bullion Market Association (LBMA) for gold delivery.
There are many options with owning gold, but nothing is more affordable than 24K gold bullion one gram bars. Owning gold could not be any more affordable than a gram with no fees, no purchasing requirements or account balances. As you can see in the chart provided, Banking institutions can not deliver on this promise. How many banking customers can afford $1,500 to $1,900 for an ounce of gold? Likewise, how many banking customers actually have $18 to $20 a week which is currently going into a bank account? The chart identifies many in fact do. When we are seeing these same banking customers in a month have put $72 to $80 in a bank account where it earns and average 1.5% and most are earning .5%. So in effect, the earned interest on a checking account has been absorbed by the monthly maintenance fees. The result is you are not making any money with your funds in a interest bearing checking account than even a regular non-interest bearing checking account.
In comparison with the bank checking account and the world gold market we can see there is a much greater gain to be made with the later option. The total earned interest from the bank checking account is from $73 to a little over $81 (in considering a monthly investment of $72 to $80 a month). Where gold would provide you a minimum of $74 (57 euros) to a little over $82 (64 euros).
The same $72 to $80 that is going to your existing bank checking account could be converted to 24K gold would earn a “daily” minimum of 3%. So in effect you are doubling your interest on your investment (1.5% bank checking account). The 3% gain is then going into your gold savings account and staying there since there are no monthly maintenance fees. Then when you decide to cash and convert, which most do not since gold historically is always increasing in value, but should you decide then the conversion from euro to gold is a little over 20%. Here is an example, $72 is a little over 56 euro, earns 3% daily is about 57 euro gain. Converting back to dollars will provide you a total dollar return of about $73. The end result after a month is instead of paying the $30 monthly maintenance fee to the bank checking account, you gained the monthly maintenance fee back in your gold savings account and then some.
Which is a more secure form of investment? A bank account no longer insured by FDIC and could lose everything, or gold which has gained from $34.99 in WWII to current $1,500 or 1,223.72 euro? Gold’s strength was at an all-time high in 2011 with the U.S. market high of almost $1,900 an ounce or almost 1350 euro also a high on the London Bullion Market Association (LBMA).
Certainly history tells us the dollar is not a good investment, has not increased in value, struggles under uncertainty daily, is highly regulated and has been manipulated by the Federal Reserve. Gold, on the other hand, has always come to the rescue of investors of the dollar and continues to gain in value and return.