Last Wednesday, the Federal Reserve of United States announced its plan to purchase US$600 billion Treasury securities. What this means it that the USA will be printing another $600 billion dollars and flood the international markets with cheap dollars, effectively driving down the value of dollar. This move could have an impact on gold price and UOB Gold/Silver Savings Account.
Now how would that affect you? Plenty. This is because now that banks have cheap access to huge amount of money and will drive down interest rates to virtually zero. So actually your money in the bank is getting negative interest rates due to inflation.
One way to hedge against inflation and earn passive income is investing in precious metals like gold and silver. Throughout history, gold has always been viewed as safe haven, particularly during turbulent times like wars. This is because unlike currency, gold has intrinsic value and is in limited supply. For the longest time, investors have always regarded gold as a safe haven during market uncertainty. Thus, gold prices usually move in opposite direction to the state of economy.
In Singapore, one of the easiest ways to invest in precious metals is by investing in UOB’s gold saving accounts.BasedRead more