Finance and Credit
 

Conservative methods of investing

Vol. 24, Iss. 9, SEPTEMBER 2018

Received: 15 May 2018

Received in revised form: 23 July 2018

Accepted: 6 August 2018

Available online: 28 September 2018

Subject Heading: Banking

JEL Classification: E21

Pages: 2184–2198

https://doi.org/10.24891/fc.24.9.2184

Parshina L.N. Emperor Alexander I St. Petersburg State Transport University, St. Petersburg, Russian Federation
ParshinaLN@yandex.ru

ORCID id: not available

Subject The article addresses the safe ways to invest money.
Objectives The purpose is to analyze various methods of investing money, i.e. real property purchase, account opening with a commercial bank, and precious metals purchase, namely, gold bullion coins. The paper also considers prices for one square meter of property measured in gold.
Methods I employ various methods of academic research, like economic analysis, statistical and economic method, and systems approach.
Results The cost per square meter is growing faster than household incomes. With the current rate of inflation, the deposit interest rates of commercial banks make it impossible for depositors to maintain the purchasing power of their savings. To protect their savings, individuals should pay attention to precious metals, gold in particular. Gold as a commodity is sold in various forms. The most common method is gold bullion and gold coin trading. The findings may be useful for individuals concerned about maintaining the purchasing power of their savings.
Conclusions It is crucial to diversify risks and distribute money equally into precious metals, foreign currency (preferably the US dollar, as it is the funding currency, and all goods and major debts are denominated in USD), and the Russian ruble.

Keywords: household savings, gold, gold bullion coin, real estate, money investment

References:

  1. Katasonov V.Yu. Zoloto v ekonomike i politike Rossii: monografiya [Gold in the Russian economy and politics: a monograph]. Moscow, Ankil Publ., 2009, 286 p.
  2. Bukato V.I., Lapidus M.Kh. (Eds). Sovremennyi rynok zolota [The modern gold market]. Moscow, Finansy i statistika Publ., 2004, 320 p.
  3. Maloney M. Rukovodstvo po investirovaniyu v zoloto i serebro [Guide to Investing in Gold and Silver: Protect Your Financial Future]. Minsk, Popurri Publ., 2009, 320 p.
  4. Smirnova N. Kak vyzhit' i sokhranit' svoi sberezheniya vo vremya krizisa? [How to survive and retain your savings during the crisis?]. Moscow, Eksmo Publ., 2009, 176 p.
  5. Bernstain P. Vlast' zolota. Istoriya navazhdeniya [The Power of Gold: The history of an Obsession]. Moscow, Olimp-Biznes Publ., 2004, 400 p.
  6. Burtsev S.V. Zoloto. Proshloe. Sovremennost'. Budushchee [Gold. The past. The present. The future]. St. Petersburg, Petropolis Publ., 2012, 340 p.
  7. Burtsev S.V. Demonetizatsiya zolota. Problemy sozdaniya novoi valyutnoi sistemy [Demonetization of gold. Problems of creating a new currency system]. St. Petersburg, SPbSUEF Publ., 2012, 37 p.
  8. Lewis N. Zoloto: den'gi proshlogo i budushchego [Gold: The Once and Future Money]. Moscow, Grafika.ru Publ., 2011, 294 p.
  9. Anikin A.V. Zheltyi d'yavol. Zoloto i kapitalizm [Yellow devil. Gold and capitalism]. Moscow, Progress Publ., 1982, 280 p.
  10. Maksimov M.M. Ocherk o zolote [Essay on gold]. Moscow, Nedra Publ., 1988, 112 p.
  11. Borisov S.M. Zoloto v sovremennom mire [Gold in the modern world]. Moscow, Nauka Publ., 2006, 248 p.
  12. Jagerson J. Vse ob investirovanii v zoloto [All About Investing in Gold]. Moscow, Mann, Ivanov i Ferber Publ., 2013, 248 p.
  13. Bukato V.I., Lapidus M.Kh. (Eds). Zoloto: proshloe i nastoyashchee [Gold: The past and the present]. Moscow, Finansy i statistika Publ., 1998, 288 p.
  14. Anikin A.V. Zoloto: mezhdunarodnyi ekonomicheskii aspect [Gold: An international economic aspect]. Moscow, Mezhdunarodnye otnosheniya Publ., 1988, 336 p.
  15. Borisov S.M. Zoloto v ekonomike sovremennogo kapitalizma: monografiya [Gold in the economy of modern capitalism]. Moscow, Finansy i statistika Publ., 1984, 478 p.
  16. Potemkin S.V. Blagorodnyi 79-i: Ocherk o zolote [Distinguished 79: An essay about gold]. Moscow, Nedra Publ., 1988, 176 p.

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 24, Iss. 9
September 2018

Archive