They call them ‘dead money’, money that is stuck in the current account and does not generate income, but rather depreciates over time. This 1.384 billion euro treasury is a treasury that demonstrates the great saving capacity of Italians even in economically difficult times. Unfortunately, the money standing in the bank is destined to decline due to inflation, or rather, the loss of purchasing power. “To not depreciate against inflation, our currency needs to make an 8.3% gain, otherwise it’s what is called dead money,” says Marco Doni, head of professional traders and teachers at Joe Ross Italia SpA. to them?
Italy ranks last in Europe in financial education
“Currently, in light of current socio-economic scenarios, there are not many solutions to manage assets between inflation rates peaking at 10 percent (8.3 percent today), government bonds, or traditional investments with very low yields, increasing returns. raw material costs, the gradual weakening of the euro and the increase in interest rates by central banks to contain devaluation,” explains the expert. To get the most out of the savings in your life, you first need to get adequate financial education, especially if you’re aiming for 10% returns that are much higher than traditional ones. Saying that we should be the architects of our own future, Doni invites Italians to learn how to manage their own money independently.
Unfortunately, we are among the countries with the least knowledge on this subject in Europe. According to the European Consumer Payments Report (EPR), a survey of 24 European countries found that more than 40% of people interviewed in Italy do not believe they have enough financial education to understand the challenges of recent years, compared to the European average of 30. %. However, before starting a training course in the financial sector, it is necessary to learn about the skills of the teacher and to check whether the method he teaches is profitable. Next, check student assessments to assess ability to explain complex concepts clearly and intelligibly.
Gold remains an excellent safe-haven asset
Another way to protect savings from inflation is to decouple them from the monetary system, perhaps by investing in physical gold, virtually buying real gold bars. “Gold – says Doni – is an asset that is unaffected by inflation or currency devaluation. From 2004 to date, the precious metal has always performed and recorded a substantial +500%”. The expert underlines that this type of investment is not speculative, it should be understood as an accumulation because “it is very likely that its price will continue its positive trend in the medium-long term, given the current conditions in 5 years, and no matter what”, the maximum of gold has been determined today, it may be the minimum of the quotation in the coming years. ” said.
Keep reading on Today.it…
Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
