Choosing a gold deposit as the best option for storing funds when trading on the stock exchange
For many years, while trading on the stock exchange, I have adhered to an important rule: never keep more funds in a trading account than is necessary for work.
I prefer to keep everything above the required volume for transactions separately - in another, reserve account.
This approach allows us to significantly reduce risks. For example, I use about $20,000 in active trading, and keep another $25,000 in reserve—in a separate account that doesn't trade and isn't subject to market fluctuations.
At the same time, the question arises: where to store the reserve funds in the reserve account, what currency would be preferable at the moment?
I continue to use the US dollar in my main trading account out of habit, but I have absolutely no desire to keep my spare money in this currency.
Of course, you can use the euro, but this currency is not particularly trustworthy today, so it cannot be called completely safe.
What currency is best to keep reserves in?
For completely secure storage of funds, one broker recently launched an interesting alternative – a gold account.
| Parameter | Account in dollars (USD) | Euro (EUR) account | Gold Account |
|---|---|---|---|
| Reliability in times of crisis | Average | Average | High |
| Inflation protection | Low | Low | Excellent |
| Volatility | Average | Average | Low |
| Liquidity | High | High | High |
| Convenient storage | Excellent | Excellent | Safe (no physical gold) |
During periods of instability and high inflation, the precious metal constantly rises in price, and for my purposes, a gold account is the best choice, because the money in it is stored for a long time and I rarely use it for trading.
Moreover, such a gold deposit can also be used as a simple way to store savings for the long term. Unlike buying physical gold, you're purchasing the metal at a more favorable price and don't need to store it for safety.
You can open an account with gold as your deposit currency at RoboForex . The opening form looks like this:
If you don't yet have an account with this broker, you'll first need to complete the standard registration process to open one.
I've been working with RoboForex since 2011 and can confidently say it's the best broker I've ever dealt with. And with the introduction of gold-denominated accounts, it's also the most convenient, as it allows you to keep funds not used for trading or simply your savings for a long time.
An additional benefit is that you won't have to pay capital gains tax immediately when you convert precious metal into regular currency.
