Is gold better than bank savings? A realistic analysis before making a decision.
At a time when prices are rising and the value of the currency is changing from time to time, many Saudis are asking a very important question:
"Should I put my money in the bank or convert it to gold?"
The truth is, the answer isn't a simple "yes" or "no"... the answer depends on a basic understanding of the market, and as they say:
If you know the game… you know how to choose.
In this article, we compare bank savings and gold savings in a realistic way that suits the Saudi citizen, and we explain to you when gold is better, and when liquidity in the bank is a suitable option.
1) Bank savings: High security… but the value changes
The funds in the bank are characterized by three points:
- Easy access
- No risk
- Suitable for emergencies
But… there’s an important point that many people overlook:
The value of money in the bank decreases over time.
A simple example:
If you leave 10,000 riyals in your account for a year, its purchasing power after a year will likely be less because:
- inflation
- rising prices of goods and services
- Decrease in purchasing power
This means the bank keeps a record of the amount... but it doesn't keep a record of the amount's value .
This is where gold comes in as a clever solution.
2) Gold: The asset that protects the value of money
Throughout history, gold has been a “store of value”… today… 20 years ago… 200 years ago.
The reason is simple:
Gold moves with inflation, not against it.
What if everything in the market went up?
Gold often rises as well.
That's why many people have started switching to 24-karat gold bars instead of saving cash.
The most commonly used alloys for Saudi savings are:
Because it is easy to buy and assemble.
3) Who is better? A quick and direct comparison
a) Safety
- Bank: High security
- Gold: High security if stored correctly
draw
b) Long-term purchasing power
- Bank: It decreases with inflation
- Gold: It often retains its value
Winner: Gold
c) Liquidity
- Bank: Withdrawals in seconds
- Gold: You can sell it easily… but it requires a trip or a buying platform.
Winner: The Bank
d) Rate of return
Gold doesn't give you a "monthly return" but it does give you:
Long-term value growth
Especially if you buy gradually:
- 1 gram ingot per month
- or
- 5 gram ingot
Winner: Gold (long term)
e) Protection from crises
- Bank: May be affected by currency value
- Gold: The most stable asset during global crises
Winner: Gold
4) Okay… should I sell the bank and convert everything to gold?
Definitely not.
This is a risk.
The best method recommended by most financial advisors:
Divide your savings into two parts:
1) Emergency liquidity (in the bank)
Expenses range from 3 to 6 months.
2) Long-term savings (gold)
In the form of reliable alloys such as:
The more weight there is… the smaller the margin… and the closer the price becomes to the market price.
5) Why are Saudis turning to bullion instead of jewelry?
Because the things involved are:
- Manufacturing
- lozenges
- Additional fees
While the alloys contain:
- 999.9 purity
- No manufacturing
- Suitable for storage
- Desirable when selling
That's why the gold ingot has become the "golden wallet" for many people today.
6) Is buying gold online safe?
Yes… if it's from a trusted store.
Like Specsa, which guarantees you:
- Official documentation
- Serial number for each ingot
- Secure shipping
- Clear Sharia policy before sale
- Competitive prices
All products in Spexa are sealed by their original factories, whether:
- PAMP
- BTC
- Desert Treasure
In summary: What's best for you?
If your emergency target is: the bank
If your goal is to preserve the value of money: gold
If your goal is long-term investment: genuine bullion
If you want a smart solution: divide it between the two.
What is the first practical step?
Start with the weight closest to your budget.
And with time… you'll see the difference.