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Category: Money

Budgeting vs Financial Planning: What’s the Difference?

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In similar lanes but with key differences, learn how to budget your money with this helpful guide.

As always, this is not financial advice, however, if you’ve never done either, then budgeting and financial planning might seem pretty much identical. And sure, they have their similarities. But they’re more like two sides of the same coin; both help to improve your individual finances, just in their own way.

So, what exactly are the differences, and how can both budgeting and financial planning help you to maintain a healthy financial position both now and into the future. We’ll go through how they differ, along with their benefits, in the article below. Let’s get started…

What does budgeting mean?

Budgeting is all about the short term. By tracking your income and expenses on a weekly or monthly basis, it looks at your money in the here and now. Essentially, budgeting covers how much you make, measures how much you spend, and lets you spend less than what you bring in.

Fixed expenses like your mortgage, rent, and childcare will take priority. You’ll then work out what you can spend on food, transportation, and clothing. Anything that’s left over can then be used on things like eating out, holidays, or long-term investments, if that’s what you want to do.

When you budget, you make active decisions as to where your money goes. Tracking spending in this way makes balancing your outgoings and paying bills on time far easier, and in the event of emergencies, you’ll have extra cash to deal with the unexpected too.

man looking over paperwork

What is financial planning?

Whereas budgeting offers a snapshot, financial planning looks at the larger fiscal landscape, so you can reach more long-term goals. There’s a lot more vision involved in financial planning, allowing you to plot a course on the way towards milestones like owning a home, starting a family, furthering your education, and retiring.

A financial plan lets you track your progress towards these kinds of goals quarterly or semi-annually. Generally, the process involves something akin to the following:

  • Listing the things you or your family want to achieve
  • Looking at your current financial position including analyzing assets, liabilities, income, and expenditure
  • Analyzing how far from achieving these goals you are
  • Creating a plan of action to help you reach your goals
  • Putting this plan into practice (aka the hard part)
  • Making the necessary adjustments if things change

You may employ a financial planner or advisor to be on hand to help you create a tailored financial plan and offer objective advice along the way.

How do budgeting and financial planning differ?

Starting to get a sense of their differences? Let’s take a closer look at their distinctions in more detail below.

Different aims

Budgeting is more concerned with cleaning up certain spending habits. Maybe you’ve been eating at too many fancy restaurants lately? Or you’ve been treating yourself to fancy new clothes more than you’d like. Putting more into your savings account every month might be a wiser decision instead.

Financial planning, on the other hand, is more concerned with reaching bigger financial goals, such as paying off debt or saving for your wedding day.

Slow and steady vs. quick and instant

When your spending habits are placed under the budgeting microscope, you’ll be tracking your progress far more often than you would with financial planning. Whereas the latter is more like a long-distance race, budgeting is a 100m sprint by comparison; you’re moving quickly to tick off short-term goals as often as you can.

Financial planning looks at larger goals, and for that reason, progress is slower and more measured. You’ll also be tracking your progress a lot less too, usually at quarterly or annual intervals.

piggybank to represent savings

Drilling into the details

Analyzing your spending habits means getting down to the brass tacks of where your money goes. When you’re committed to counting the pennies, you’ll be setting up spending limits that require a more incremental view of your outgoings, even if it’s just a few dollars a month you end up saving.

On the other hand, financial planning isn’t as concerned with such a granular view of things. Getting too hung up on the exact amounts you’re spending can actually end up getting in the way of your long-term goals.

What are the benefits of budgeting and financial planning?

The benefits of budgeting

  • More control over your cash – Rather than spending freely and hoping you have enough left in your account when it’s time to pay for bills, rent, or the mortgage, budgeting lets you know you have enough to pay for your necessities.
  • Helps you save for unexpected costs – A sick family member. Repairs to your car. Losing your job. When you budget, you can always fall back on your reserves when something you weren’t prepared for rears its head.
  • Highlights immediate money issues – By shining a light on your spending, you can identify any problems that need rectifying before they spiral out of control.
  • Makes talking about money issues easier – Nobody likes to have ‘the money talk’. But it definitely pays to mention your budgeting plans to your loved ones. Not only will they be on the same page regarding your spending limits, but they’ll be part of the solution too, all of which adds up to a more prudent approach.

family having discussion on sofa

The benefits of financial planning

  • Creates peace of mind – Money worries are a big issue. They’re also an avoidable one. With the right planning and financial tools on your side, it’s possible to create a greater sense of security and peace of mind, even in the event of emergencies.
  • Lets you live the life you want – With a plan that you can actually follow, financial planning lets you make the necessary adjustments and alterations that give you power over your money. With an enhanced view of your finances, you’ll always be aware of the amount you need to live life your way.
  • Greater goal setting – When you have goals to work towards, it gives your life a greater sense of direction and purpose. And it’s been said that people who actively work towards their goals are almost 10 times more likely to succeed. That’s the kind of motivation we like to hear about!

To learn more, visit our homepage or give us a call at (877) 258-0181.

7 Steps to Achieve Financial Security

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A financially secure future could pay off nicely. But how can you start saving? Let’s take a look here…

When it comes to financial security, there’s no shortage of worrying figures. More than 40% of Americans fret over their finances each night, for instance. Elsewhere, 29% don’t have any savings at all to fall back on. With bills, regular expenses, hobbies, and other outgoings to deal with, it’s easy to see why we can start to spread ourselves thin.

And while everyone wants to be able to manage their finances so they can afford a lifestyle that suits them upon retirement, it’s certainly easier said than done. So, what can you do to become more financially stable now and into the future?

We’re not financial advisors and aren’t in any position to offer you financial advice. So instead, we’ll offer up a few pointers and suggestions as a place to start that you may want to consider.

What is financial security?

There’s more to financial security than simply “having money”. How many times have we seen entrepreneurs, athletes, and film stars acquire vast wealth only to lose it years down the line? You could have all the money in the world, but if you aren’t careful with your finances, then financial stability might always remain out of reach.

Those with financial security may be able to live without debt, can pay their monthly expenses, invest for retirement, and have money in the bank for emergencies. Put simply, they’re able to survive if anything unexpected were to take place.

Losing a job. Taking care of a sick family member. Even dealing with the repercussions of a global pandemic. A financially secure person can handle instances like this without worry.

mature couple looking through financials

How to manage your financial assets

Start saving early

The sooner you can start to save, the better. But even if you’re a late saver, don’t worry! All that matters is that you’ve started. And remember: every cent and dollar you save can make all the difference.

Consider diversifying your portfolio

You might’ve heard the term diversified portfolio before, but the two words together still make little sense. At its simplest, a diversified portfolio contains complementary assets, like stocks and bonds, that behave in different ways.

This might mean that as one part of a portfolio declines in value, the loss can be offset by another part of the portfolio that’s rising. Essentially, it’s the opposite of putting all your eggs in one basket and can decrease risk and make sure you’re making as much money from your assets as possible.

So, what can you diversify your portfolio with? As well as more traditional assets like shares, stocks, and bonds, there are also plenty of alternative investments you can use to protect yourself from risk. From physical gold and real estate, to hedge funds, cryptocurrencies, art and antiques, and even commodities such as sustainable energy, there are a whole host of alternatives you can use to optimize your asset portfolio.

Set financial goals

What does financial security look like to you? When you can answer that, you’ll have a better idea of what to do. Maybe it’s credit card debt you’d like to pay off or something you can lean on in case of emergencies? Perhaps you’d like to start saving money each month for retirement?

Whatever your goals may be, write them down and then work out how much you need to put aside in order to achieve them. Then, once you’ve defined them, put them in order of importance so you know which ones you can start prioritizing.

man calculating his finances

Start budgeting better

You knew it was coming but budgeting really is an important part of achieving financial security. If the prospect of tightening your belt makes you anxious, try to reframe your thinking: a budget is simply a way of tracking where your money is going. Without one, it’s far easier to start spending more than you should.

And once you know where your money goes, you can start to plan accordingly. Obviously, you’ll need to put aside money for the essential things like rent/mortgage, bills, food, and car payments. Added together, these should make up about half of your spending. Don’t forget, it’s been said elsewhere that your rent/mortgage should not make up more than 30% of your monthly spending.

With the remaining money, it’s recommended that you put 10% to 20% of that towards your retirement, emergency fund, or any other saving accounts you have. Any money that’s remaining is yours to live off – just be sure not to overspend.

It’s worth working out how much money you spend on things to treat yourself with. That way you can know where you may need to cut back on your spending even more.

Live below your means

Just because you have the money, it doesn’t mean you have to spend it. When you earn a decent chunk of change, it’s tempting to splurge just because you can. But by living below your means, you’ll always be spending less than you make.

young couple going through paperwork

Pay off your debt

One of the biggest obstacles on the way towards financial security is debt. If you still have outstanding debts, then greater financial security could be more of a challenge.

Luckily, by combining budgeting and living below your means with one of the two methods below, you could start paying off your debt and heading in the right direction financially. Let’s take a look at the methods that could help you out:

  • The snowball method: Here, you pay off the smallest debt first, before working your way up to larger debts, regardless of interest rates. These kinds of quick wins are a great motivator – there’s no greater satisfaction than crossing off one of your debts from the list you’ve created.
  • The avalanche method: In this method, you’ll take the opposite approach, paying off the debt with the largest interest rate first, before working your way down to smaller debts with lower interest rates. This method lets you pay the least amount of money in interest overall, but you won’t get that same empowering feeling that comes with the snowball method.

Consider the future

Prioritizing your retirement now might seem like a strange ask, but future you will definitely be thankful for your foresight. Whether you want to go traveling, learn a new skill, or just put your feet up, having money will make doing these things far easier.

You may want to research your options through work. Many employers offer a 401(k) or 403(b) plan. If so, you might want to go down that route.

If your employer has nothing in the way of a retirement plan, then you can always open an individual retirement account (IRA).

 

At Glint, we make every effort to demonstrate a balanced conversation between gold, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.

To learn more, visit our homepage or give us a call at +1 (877) 258-0181.

5 Ways to Build Good Financial Habits

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couple going through financial records

Whether you’re saving for the future or simply want to take better care of your money, it’s never too late to start building good financial habits. And with inflation soaring and the cost-of-living crisis deepening, taking a firm grip of your finances now is a smart move for the future.

Of course, the internet is awash with guides on how to save money and improve your personal finances. But often, these resources provide only surface-level advice, with money-saving tips that are difficult to maintain in the long term.

Our guide is different. Here, while we’re not offering financial advice, we’re sharing help and insights that can change your financial habits for good, with five simple rules that can improve your overall financial health and help you achieve your goals for the future.

1.     Create a Personal Budget and Spending Plan

The first step in improving financial habits is to review your current spending and budgeting so you can identify where changes need to be made. From there, you can create a bespoke spending plan that allows you to live within your means while setting aside money for future saving goals.

A formal spending plan – in which you list your income vs your outgoings – is an effective way to curb unnecessary expenses, prioritize savings, spend wisely, and make sure you have money set aside for emergencies. Take a proactive and transparent approach to ensure your spending plan covers all your outgoings; an honest assessment of your finances is the only way to make definite change.

woman with laptop and paperwork

2.     Consider Your Spending Habits

What do you see when you look back at your recent bank statement? Where is most of your expenditure going? And how can you reprioritize your monthly outgoings to save money and get yourself closer to where you want to be financially?

A good habit to get into is to segment ‘needs’ and ‘wants’. These categories are generally self-explanatory, but it’s important to keep these costs separate since it’s easy to blur the line between the two and justify unnecessary purchases as needs rather than wants.

By actively taking the time to consider and separate needs from wants, you’ll slowly start to form better habits about what to spend your money on. Saying no to a handful of want purchases each month can be a surprisingly effective way to save money and get yourself in a better financial position.

3.     Start Accumulating Savings for Your Later Years

Whether you’re in your twenties, thirties, or forties, it’s important to think about your retirement years and how you’d like to spend them. Because, while putting aside money now might seem like a waste of time – and better spent elsewhere – the accumulative impact of early saving can make a huge difference to your retirement pot, not to mention the sum you’ll need to put away periodically in the future.

Say, for example, you wanted a nest egg of $500,000 by the time you reached 60. Taking a 5% interest rate into account, you’d need to save $327.65 a month over 40 years to reach your goal. By contrast, if you suddenly felt the urge to start saving for your impending retirement at 50, you’d need to save an eye-watering – and perhaps unfeasible – $3,219.94 a month.

This type of compound saving model can apply to all financial aims, not just retirement. Whether it’s the down payment on a new car or the deposit for your first home; saving in small increments over a longer period is a good habit if you don’t want to be burdened by sizeable monthly saving goals.

woman using smartphone to do her finances

4.     Be Mindful of ‘Lifestyle Inflation’

One of the biggest barriers to wealth and savings building is a concept called ‘lifestyle inflation’. This essentially means that the more you earn, the more you spend, with an increase in spending to correspond with your growing salary.

Think about it: when your salary increases, the temptation to spend those extra earnings is only natural. Whether it’s a new car, more holidays, or designer clothes, any increase in earnings is quickly eradicated by a personal need to have more than what you did previously.

This is lifestyle inflation, and it can be a particularly innocuous phenomenon that impacts your ability to save and build wealth for the future. By becoming mindful of it, you can stifle that urge to spend and ensure that you’re using those higher earnings wisely.

5.     Make Wise Investment Decisions

Investing is more accessible than ever and provides savers with a means of protecting their savings from inflation with the potential to make sizeable earnings besides. But before you begin buying stocks and signing up to investment platforms, you need to learn what makes a good investment, how to achieve long-term success, and be willing to put time into staying up to date with the latest investment trends.

For new investors, there are a whole host of different avenues which you can take to get into safe, smart investing. Your first may be to talk to your bank, which might be able to provide guidance and advice on the types of investments that best suit your savings goals and plans for the future.

Elsewhere, there are dozens of resources online which can help you get up to speed with investing, so do your research and dedicate plenty of time to learning the ropes before you commit to a specific investment pot.

 

At Glint, we make every effort to demonstrate a balanced conversation between gold, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.
 
To learn more, visit our homepage or give us a call at +44(0)203 915 8111.

What is the Gold Spot Price?

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The gold spot price refers to the current price of gold. If, for example, you were about to buy gold there and then, the spot price is what you would pay for the specified amount.

So, why do we use the term spot and how does it differ from other ways of valuing gold? If you’ve ever wondered what separates spot price from other asset valuations, our guide is here to set the record straight. Use the links below to navigate or read on below to learn more.

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What Exactly is a Spot Price and How Is It Determined?

A spot price is an immediate valuation of how much it would cost to acquire an asset. Think of it as a right-now price, which shows the value of a commodity if you were to buy it that instant.

We use spot pricing to differentiate current and future values. For example, the spot price of gold could be very different from the futures price; we’ll talk more about the relationship between these later in the guide.

The gold spot price, specifically, refers to the price it would cost to buy one ounce of gold that instant. And since gold values can fluctuate considerably, the per-ounce spot price can vary from one day – even hour – to the next.

How is the Gold Spot Price Determined?

So, how are gold spot prices determined? This is where things can get a little technical, so bear with us while we explain.

Gold spot prices are based on previous futures contracts, which is essentially a determination of how much gold is likely to cost in the coming month or months. The futures contracts themselves are affected by a range of factors, not least the volatility of gold values during a specific period.

Young man investing or trading on laptop

Why are futures contrasts used to determine the gold spot price? Essentially, it gives an indication of how much gold is currently worth based on future values and demand, which are taken from historic economic data.

For example, at the time of writing, the gold spot price is $1,852 per ounce. To reach this figure, you need to look at previous future prices contracts, which give a clear indication of how much an ounce of gold is likely to cost in the months ahead.

Typically, to refine the gold spot price, the futures contract with the highest volume is used to calculate the value. Referred to as the spot month, this is the time when gold trading is predicted to be at its highest, based on a range of factors including historical trading data.

What Affects the Gold Spot Price?

As touched on above, the gold spot price is subject to frequent change, so the price you see today is unlikely to be the same the next. Indeed, in periods when the value of gold is highly volatile and liable to move, the spot price can change hourly, so traders must keep their finger on the pulse to buy and sell at the right time.

So, what exactly affects the spot gold price?

While gold is generally considered one of the safest and most predictable asset classes, its value can still be affected by a range of external forces. From economic data and forecasting based on historic sales patterns, to geopolitical events, comments from high-profile investors, and unanticipated action or involvement from the Federal Reserve; the value of gold can rise and dip based on several key influences.

What controls the gold spot price, monitoring and discovering key trends that affect its per-ounce cost day-to-day? The answer lies in price discovery and trading platforms, like the New York COMEX exchange.

man working on laptop

Such exchanges are designed to monitor gold around the clock, allowing traders to see real-time gold spot prices wherever they’re based around the world. The COMEX exchange is also where investors trade futures contracts, which effectively offer some security over the future price of gold for a specified amount.

Remember, gold is traded on an international scale, so over a 24-hour period, gold transactions are happening in different regions around the world. Having a standard gold spot price ensures global trading can operate smoothly around the clock.

What’s the Difference Been Spot and Futures Gold Pricing?

When looking at current gold prices on market sites and exchange platforms, you might notice a spot price and a futures price. These figures are often different, so what sets them apart?

The spot price is the per-ounce cost of gold if you were to acquire it right now. The futures price, on the other hand, refers to how much the same quantity of gold would be for a period in the future – taking into account interest rates, contract dates, and the strength of market demand at the requested time of acquisition.

The difference between the spot price and future price is often expressed as the forward rate. This allows traders more insights into the best time to buy gold.

 

Glint is a payments platform that enables its clients to buy, sell, save, send and spend real allocated gold and other currencies. Glint is not a trading platform.

At Glint, we make every effort to demonstrate a balanced conversation between gold, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.
 
To learn more, visit our homepage or give us a call at +44(0)203 915 8111.

A Guide to Spending Money Abroad

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woman using card to pay

Want more bang for your bucks on vacation? Avoid hidden fees with this handy guide on spending money abroad and getting the most of your money…

 

Slowly but surely, summer is on the way. And whether you’re taking the family abroad, planning a solo vacation, or doing a spot of international business, getting the most out of your money is just as important as packing sunscreen.

Spending money in other countries can spread your hard-earned cash a little thin. What you thought was a good chunk of change can quickly get hit by all kinds of different fees, leaving you with less spending money than you originally planned.

Want your money to go further while on vacation? You’re in the right place. From cash to cards, we’ll show you how to avoid being hit with unexpected extras during your upcoming trip.

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Is it Better to Take Cash or Card Abroad?

That depends. Some people like the security of using a card abroad. Not everyone will be happy about hopping on a plane and walking around a new country with physical money. And nothing says “tourist” like opening a wallet stuffed full of bills for all to see. All it takes is a sneaky distraction, a fleet-footed thief, and your money can be gone in seconds.

With that said, having cash on you could certainly come in useful. Not everywhere accepts cards, and you don’t want to get caught short when the final bill comes. It can also be easier to stick to a budget with physical money. If you’re a little on the spend-heavy side, it’s easy to get carried away and put everything straight on the credit card.

In general, though, the plastic approach is safer. If your card is stolen or goes missing, it’s a simple case of contacting your provider and canceling it immediately (something you can now do in most banking apps). But as this article will show, there’s a snag or two when using cards abroad that you’ll need to watch out for.

man using foreign currency on holiday

Taking Cash Abroad

If you’re thinking of taking cash with you, then you should convert it ahead of your trip. It might be tempting to change your money at the airport, but these often have the worst exchange rates. The same goes for trading money at hotel or currency kiosks at your destination. They can be pricey, and usually have poor rates and high fees.

The safest, least-expensive places to convert your cash include local banks and credit unions, as these tend to offer the best rates. Major banks, such as Chase or Bank of America, offer similar rates, plus they have the added benefit of having ATMs overseas, which is always handy if you’re running low on funds.

Online bureaus and currency converters, such as Travelex, can also help, but remember: ordering cash online means you could be hit with delivery charges and the exchange rate won’t be as strong as with your bank.

Using a Prepaid Travel Card Abroad

Think of prepaid travel cards as the new travelers’ cheques. Like credit and ATM cards, they can be used to withdraw cash, or you can simply hand them over at the checkout. You’ll be given a PIN to do both things.

The only difference is that you put money onto the card in advance. This means there’s no chance of going into debt. Need more money? All you need to do is top it up online or by text while you’re at the beach, in a museum, or sipping something refreshing at a bar.

There are a couple of catches to watch out for, of course. Certain prepaid cards charge you every time you load the card, spend on it, or withdraw cash. Based on how much you’ll be using, you could be racking a high amount of extra fees by the time you’re back home.

Worse yet, some cards will even charge you an inactivity fee if you leave money on them after your vacation’s over – and that’s on top of a fee to close the card down so you can get what’s left on it back. Be sure to steer clear of these and go for something from FairFX, Caxton, and Travelex instead.

girl paying with smartphone

Using a Credit Card Abroad

Credit card payments abroad are just as seamless as they are on home soil. But there’s an obvious price to pay – and that’s extra fees you can be hit by during your travels.

Luckily, some planning ahead of time can help minimize these hidden charges. For starters, use a credit card with no foreign transaction fee (which can range from 1% to 3% of each purchase). If your credit card is your only means of spending, then that’s a cost that’ll soon build up. Check your credit and ATM card agreements to see if you’ll be hit with these. If so, apply for a card that won’t; just be sure to apply far enough in advance of your vacation.

Once that’s done, call your credit card issuer before you jet off and let them know where you’re going and how long for. If you don’t, they may assume something suspicious is happening and block payments or suspend your card.

Watch out for dynamic currency conversion too. While the idea of paying for foreign purchases using the dollar sounds great in theory, certain merchants can be a little unscrupulous when dealing with tourists. They’ll have no problem quoting the final price in US dollars, only to make the conversion at an exchange rate that’s less than competitive.

man using smartphone and card for online banking

Using Gold Abroad

If you’re a Glint customer, you can use your Glint Mastercard in more than 150 countries around the world, so there’s no need to withdraw cash or transfer funds to a prepaid card. And with the Glint app at your fingertips, you can easily keep track of overseas transactions and fees, while also having the ability to select between different currencies at the touch of a button. If your card gets stolen, or if you lose it while you’re away, simply freeze it using your Glint app – find it again, then just as easily unfreeze and you can continue to use as before.

When it comes to spending abroad, it’s important to weigh up the best options that will make your cash go further. A little research before your trip can pay off when it comes to avoiding fees and protecting your money.

 

At Glint, we make every effort to demonstrate a balanced conversation between gold, crypto, and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk-free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline. To learn more, visit our homepage or give us a call at +44(0)203 915 8111.

What is Investment Risk and Why is it Important?

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Defining investment risk might sound simple – it’s the threat of losing money, right?

Well, while potential monetary loss forms the basis of risk, there’s more to the story. Because risk takes many forms in the field of investing, and there are a whole host of threats that are unique to different types of investments.

So, to fully understand the definition of investment risk, you need to consider a broad range of factors. In this guide, while we’re not offering you financial or investment advice, we will show you what investment risk is and why it’s important, before offering some tips on how to effectively minimize risk when investing. Remember, Glint isn’t an investment platform, so we’re able to remain completely neutral on the subject.

Use the links below to navigate or read on for the full guide.

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What Is Investment Risk?

Investment risk isn’t just the threat of losing money. It encapsulates all the factors that can affect your return on investment – whether that’s market conditions, geopolitical events, changing legislation, economic performance, or even things like climate change and extreme weather.

To this end, the consequences of investment risk aren’t purely limited to losing money. From dwindling returns to watching investments fail to grow, the repercussions of investment risk can be detrimental, so it’s important to do everything you can to mitigate risk where possible (more on this later).

To further complicate the issue of investment risk; there’s a fine line between being too exposed to risk and too risk-averse.

Exposing yourself to risk can lead to loss and dwindling returns. But remember, investing is never without risk, so by not taking enough calculated risks, you could effectively weaken your position and potentially lose more money than you otherwise would have.

Getting investment risk right, then, is something of a balancing act. You need to take some risks to ensure you’re not losing out unnecessarily, while also being aware of your limitations and exposure to external forces.

Why Is Investment Risk Important?

Understanding and accepting investment risk is important for several reasons, including:

  • Allows you to set your own risk parameters – knowing the risks you face as an investor puts you in a powerful position wherein you can set your own parameters and level of exposure to risk. For instance, if you’re happy to accept the calculated risk of losing money, you may seek high-risk, high-reward opportunities. If, however, you don’t want to lose any money, this will also dictate the investments available to you.
  • Demonstrates both sides of the investment coin – those new to investing may see some opportunities as overly risky, or even reckless. But with experience and a clearer understanding of investment risk, you can make calculated decisions and avoid allowing an aversion to risk stop you from taking on a project that could prove lucrative in the long run.
  • Shows you which investments may be most suitable for you – when you understand the different types of investment risk, you’ll be better placed to decide on the opportunities that are right for you. For example, typically high-risk investments like cryptocurrencies and commodities may be better suited to some types of investors than others due to the risks involved, while things like bonds and shares may be a good option for the more risk-averse.

What Are the Main Types of Investment Risk?

As an investor, there are two main risk types that you need to be aware of: systematic investment risks and unsystematic investment risks. We’ll cover what these are and their characteristics below.

What is Systematic Investment Risk?

Systematic investment risk generally covers threats affecting the broader economy and market. Often referred to as market risks, these are factors that disrupt economic performance and market conditions, and put the success and returns of individual investments in jeopardy.

Examples of systematic investment risk include geopolitical events, economic uncertainty, rising inflation, and socio-political activity. It can be difficult to avoid and mitigate systematic risk, since they affect the broader market and can directly affect a broad range of industries at any one time.

What is Unsystematic Investment Risk?

 Unsystematic investment risk is any threat faced by an individual industry, sector, or business. These kinds of risks don’t arise from broader market conditions but are instead prompted by industry-specific events and activity. In short, they’re anything that can affect a business’ ability to turn a profit and thus offer a return to its shareholders, including things like:

  • Regulatory changes or legal action
  • A change in management or senior personnel
  • Product recalls or errors
  • Bad PR and reputational damage
  • The emergence of new competitors within the market

Unsystematic investment risk can be damaging, with the potential for investors to lose everything should the outcome be particularly detrimental. However, there are ways to protect yourself against unsystematic investment risk, including asset portfolio diversification.

How Do You Minimize Risk When Investing?

While it’s impossible to remove investment risk altogether, there are plenty of things you can do to mitigate it and protect yourself from financial loss. Below, we offer a few essential tips on how to minimize investment risk.

  • Diversify your investment portfolio – as touched on above, one of the best ways to mitigate investment risk is to diversify your portfolio. The proverb “never put all your eggs in one basket” is perhaps the best way to sum up the benefit of diversification; it’s all about spreading the risk across multiple assets to minimize threats regardless of market conditions.
  • Invest in pooled funds – if you want to diversify your assets with minimal legwork, putting money in a pooled fund can be effective. Essentially, this is when you give a lump sum to a fund manager, who will spread it out across multiple assets to manage your desired level of risk and return.

  • Invest globally – one way to mitigate systematic risk is to invest on an international scale. This means that your money won’t be so easily affected by economic disruption in a single country.
  • Assess your investments regularly – to make sure you’re always hitting the sweet spot between risk exposure and risk aversion, assess your portfolio regularly to see how your investments are performing. If things have slowed, you may consider that it could be time to look at new, potentially riskier options; if there’s trouble brewing in the wider economy, you may choose to dial things back.

At Glint, we make every effort to demonstrate a balanced conversation between gold, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.  

While explaining Investment risk, we are giving you the information to help you make up your own mind. Glint does not offer any financial or investment advice and would not ever make a suggestion that you should enter into a situation that would put you or your money at risk. Your money is at risk with all investments.
 
To learn more, visit our homepage or give us a call at +44(0)203 915 8111.

8 Alternative Ways to Save Money

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8 alternative savings methods

Amid rising interest rates, soaring inflation, and global economic uncertainty, cash alternatives are proving a popular place for savers to store their money. But which of these left-field savings options provides the best solution? And what risks and rewards should you consider before moving your money?

To help you navigate the often confusing, at times risky world of alternative savings, we’ll look at 8 of the more unconventional ways to save money in 2022.

Please be aware that this is NOT financial advice.

1.    Equities

Equities like stocks and shares remain a popular place for savers to put their cash, and generally speaking, such assets perform better than cash savings over long periods. Of course, there are risks involved in equity investing, so careful research and due diligence are needed before you part ways with your hard-earned savings pot.

Pros

  • On average, equities perform better than cash over the equivalent period
  • You can spread the risk of losing money by investing in a range of equities
  • Potential to make significant earnings on your investment

Cons 

  • Equities are considered a high-risk savings strategy, and you could lose some or all your savings
  • Equities don’t perform as well when interest rates are rising
  • The value of stocks and shares can be influenced by a huge range of forces, making them especially volatile

2.    Exchange-Traded Funds (ETFs)

Those looking to invest on the stock market in a low-risk way should consider exchange-traded funds (ETFs). This is when you effectively invest in a package of stocks across a broad range of industries, providing greater protection should sector-specific crashes affect share prices. A benefit of ETFs is that you can choose your level of risk, so there’s more certainty about retaining overall asset value.

Pros

  • A simple way to invest on the stock market while diversifying your assets
  • A broad range of ETF options means you can choose your level of risk
  • Diversification means reduced risk of losing money

Cons 

  • ETFs carry the same risks as general equities; you could still lose all your money by investing poorly
  • When investing in a gold ETF, the asset is not owned by you but by the trustee.

Looking for new ways to save

3.    Unit and Investment Trusts

Unit and investment trusts are similar to ETFs, with the key difference being that they operate through a trust. The trust or fund manager will pool resources from trustees and invest in well-performing assets, including a mix of bonds, shares, and property funds. Typically, trustees receive a quarterly or biannually income on all earnings made across the portfolio of assets.

Pros 

  • Fund managers typically target well-performing assets
  • Potential to make gains and receive an additional income

Cons 

  • Earnings aren’t always guaranteed, as trusts tend to focus on low-risk assets
  • As with other investments of this kind, there’s still the chance of losing money

4.    Government or Corporate Bonds

Bonds have long been a popular way of storing money with the added bonus of earning interest on the money you lend. Typically, governments or companies request money which you issue to them as a loan, which they then pay back within an agreed timeframe with added interest.

Pros

  • Predictable returns over a set period of time, so you get tight control of your money
  • Lower risk than shares and stocks, particularly when dealing with stable organisations
  • Potential to make sizeable earnings as interest

Cons 

  • If you want to make significant earnings on your savings, bonds may not be the most lucrative option
  • Dealing with unstable organisations carries a risk

5.    Peer-to-Peer Lending

Peer-to-peer (P2P) lending is comparable to bonds with the key difference being that you’re lending money to individuals, and not just governmental bodies and businesses. You can still earn interest on the loans you issue, but there are more risks involved. Peer-to-peer lending is generally managed by P2P platforms, through which you can easily manage different loans and revenue streams.

Pros

  • Potential to make steady earnings
  • Growing number of P2P platforms offers lots of opportunities to invest
  • Most P2P platforms are now regulated by the FCA

Cons 

  • Riskier than bonds since you’re dealing with individual lenders
  • P2P platforms aren’t covered by the Financial Services Compensation Scheme, so you could lose everything if a platform were to collapse
  • Requires careful management, and can be a steep learning curve for those unfamiliar with this type of lending

New saving methods

6.    Crowdfunding

The popularity of crowdfunding has risen astronomically in recent years, and could be considered a high-risk way to put money aside for the future. It essentially involves speculating on new and upcoming businesses and projects, backing them through crowdfunding sites to help them realise their ambitions for growth. Get it right, and it can be one of the fastest ways to grow your money.

Pros

  • Allows you to support the businesses, projects, and initiatives you care about
  • Potential to make sizeable earnings if the company gets off the ground
  • You might receive gifts, products, and early access to new tech by supporting some funds

Cons

  • No guarantee of future earnings
  • Crowdfunding is speculative, so there’s a risk of losing money

7.    Cryptocurrency

Cryptocurrency may remain a volatile and highly divisive asset class, but there’s no denying that these types of digital currencies have made a lasting impact on the economic landscape. If you’re interested in investing in crypto, you need to consider the risks involved and perform the appropriate due diligence before parting ways with your cash.

Pros

  • High risk, high reward savings opportunity
  • Blockchain technology that underpins cryptocurrency is generally very secure
  • Since the value of crypto is based on global demand as opposed to national inflation, it could help you stave off the negative effects of rising inflation

Cons

  • Volatile and highly risky investment, with the potential to lose all your money
  • Not proven as a secure, long-term investment
  • Steep learning curve attached to understanding and investing in cryptocurrencies

Alternative saving methods

8.    Gold and Precious Metals

Gold and precious metals have been used as a means of hedging against inflation for decades, and they are largely considered one of the safest places to store your money in times of economic uncertainty.

Pros

  • Gold and precious metals are among the best lines of defence against inflation
  • Reliable money that will hold its value over time

Cons

  • Gold doesn’t offer the earnings potential of other investment assets
  • The value of gold can go up or down, meaning its spending power could also be worth less.

At Glint, we make every effort to demonstrate a balanced conversation between gold, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.
 
To learn more, visit our homepage or give us a call at +44(0)203 915 8111.

What is a Stablecoin and How Do They Work?

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You’ve heard of bitcoin, crypto and blockchain, but what about stablecoin? If you’re unfamiliar with this new, up-and-coming digital currency, it’s high time you studied up to realize its benefits and potential.

To help you get to grips with stablecoin, we’ve put together this need-to-know guide covering what it is, how it works and – most crucially – whether it’s safe, secure, and worth investing in.

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What is a Stablecoin and How Do They Work?

Stablecoin is a digital currency that is backed by assets such as gold and fiat currency. It was developed as a safer alternative to other cryptocurrencies, which have historically been highly volatile and liable to peaks and plummets in value.

While the rise of cryptocurrencies was meteoric, they remain a divisive asset among investors. This is largely due to their instability and unpredictability, which make it difficult for investors to choose the right coin and forecast their expected return.

Stablecoin goes some way to solving this problem, affording investors greater certainty of value. Unlike other digital currencies, these coins are attached to ‘stable’ assets such as gold or fiat money, which means they circumvent the dramatic peaks and troughs in value that other crypto can suffer.

As well as this, stablecoins are also decentralized; they’re not attached to a single organization, system, or agency like other crypto. This affords greater liquidity, simpler access, and enhanced autonomy, so they’re much easier to trade and transfer.

To summarize then, stablecoin essentially bridges the gap between fiat money and cryptocurrency, providing a safer and more attractive prospect for investors. And while it does have its risks and drawbacks (including low yields compared to other crypto), it’s fast becoming one of the most popular ways to invest in the cryptocurrency ecosystem.

What Affects Stablecoin Prices?

Stablecoins act much differently to other cryptocurrencies. Because they’re pegged to fiat money, commodities or physical assets like gold, their price is affected by economic performance, demand for US currency and the current monetary policy of the Federal Reserve.

When looking at the value of stablecoin, it’s worth touching on an important point: the likelihood of making a return.

In the eyes of many investors, one of the key drawbacks of stablecoin is the low rate of return compared to other crypto. This is due to stablecoins being tied to the performance and value of other assets.

For this reason, you shouldn’t see stablecoins as a boom-or-bust investment like other cryptocurrencies. Their stability means they offer a low-risk but ultimately low-reward investment opportunity, with interest the only real way of making money in the long term.

Instead, consider stablecoin a safe jumping-off point into the world of digital currency. With the security of fiat money backing and streamlined accessibility, it affords an attractive means of dipping your toe in crypto without taking a huge risk.

How Safe Are Stablecoins?

In short, very. Not only are stablecoins backed by a combination of fiat money, gold, and commodities, but their value is also monitored and maintained by algorithmic mechanisms, which further enhance their safety and stability.

To put it another way, stablecoins are subject to the same risks as the assets that back them. So, just as the US dollar can rise and fall in line with economic health, so too will the value of stablecoins.

One thing to note, however, is that many people believe you should always look to invest in decentralized stablecoins, and not those linked to a single agency or organization. That’s because they’re much more vulnerable to theft, disruption and interference when stored in a central location, as opposed to being open, global, and accessible.

It’s worth remembering, too, that stablecoins are a relatively new type of digital currency. And given the pace of change within the crypto ecosystem, there may yet be some undiscovered risks associated with this type of coin, so be sure to undertake the appropriate due diligence before you invest.

How is Stablecoin Regulated?

Despite being billed as a safe digital currency, stablecoin isn’t currently regulated in the US and many other parts of the world. This is despite plans to regulate it having reached the halls of Congress, where it is still being debated by members months later.

The issue of regulating stablecoin is a complex one. While many high-profile corporations, including Meta, have come forward in support of regulating the currency, the President’s Working Group on Financial Markets, who are tasked with assessing stablecoin’s viability, have raised questions about what bringing the currency into the mainstream could mean for market integrity and economic health.

It argues that while the majority of stablecoins are claimed to be pegged to fiat money, some are actually backed by other assets, including US Treasury Debt (USD Coin) and Tether, another type of cryptocurrency. This ultimately makes general regulation much more difficult, since there may be huge variances in what different stablecoins are worth at any given time.

So, while stablecoin regulation could well happen, the currency has a few hurdles to overcome before it’s officially rubber-stamped.

Different Types of Stablecoin Explained

As if the world of stablecoin wasn’t confusing enough, there are four types of coins you need to be aware of. We’ve broken these down below.

  1. Fiat-collateralized stablecoins – these are the most prevalent form of stablecoins and comprise of a digital currency backed by a fiat currency like the US Dollar. Since they’re based on real money, they can easily be exchanged and transferred, so they’re among the simplest stablecoins to manage and purchase.
  2. Commodity-backed stablecoins – commodity-backed stablecoins are those backed by assets including gold and other precious metals, as well as things like oil and gas. Though not as liquid as the fiat-collateralized variant, they’re more likely to fetch a higher return since the value of commodities isn’t tied to currency rates.

  1. Algorithmic stablecoins – this is where the world of stablecoin can get confusing. The algorithmic variation is controlled by unique mechanisms that monitor supply and demand, raising or reducing the number of available stablecoins to match. Unlike other stablecoin types, there’s no commodity or cash backing here, so investors are more at risk of sizeable losses.
  2. Crypto-backed stablecoins – backing stablecoins with cryptocurrency may sound counterintuitive, but it’s all about optimizing decentralization. Typically, stablecoins of this type are backed by a combination of cryptocurrencies, spreading the risk while allowing the opportunity to make a greater return on your investment.

We understand that the stablecoin ecosystem can be confusing. But with millions currently being invested into this type of digital currency each year, it’s something many investors are looking to consider in the future.

 

At Glint, we make every effort to demonstrate a balanced conversation between gold, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.
 
To learn more, visit our homepage or give us a call at +44(0)203 915 8111.

Which Investments Are the Best Hedges Against Inflation?

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Inflation has long been a thorn in the side of investors, influencing where they place their money and how much they’ll get in return. The good news is there are ways to combat the negative effects of inflation, and this all starts with hedging.

Hedging against inflation is a sensible option for investors looking to safeguard their assets against loss of value. But how do you do it? And what’s involved?

In this post, we’re looking at the best hedges against inflation, covering what the inflation hedging process involves and the key things to consider. Whilst we are passionate about gold, we’re not involved in investments, so you can rest assured the information here is completely impartial.

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How to Hedge Against Inflation

To understand inflation hedging, you need to be clear on what inflation is and how it can affect the value of an investment. As a quick refresher, we’ve included a definition below, but please skip ahead if you’re already familiar with the term and its implications.

What is Inflation?

 Inflation represents the rate at which the value of a currency is falling, and the price of goods and services is rising. It’s a quantitative prediction that uses price changes over a range of products and services to give an indication of purchasing power within an economy.

So, back to the issue of hedging against inflation. Used by investors, it involves taking steps to protect an investment from the negative effects of inflation – retaining value where possible.

Without diversifying your investments to hedge against inflation, you might see losses. For example, if you’ve invested in something that’s increasing in value by 3% a year but inflation is 4%, you’ll see a -1% decrease in value.

That’s why hedging against inflation is such a popular tactic. It helps to retain the value of your investments even when inflation is on the up.

So, how do you do it?

Essentially, to hedge against inflation, you need to build a diverse investment portfolio that offers fallback against currency value change. That means investing in assets that aren’t easily affected by inflation, and which hold their value even in times of economic uncertainty.

Examples of assets that are typically used to hedge against inflation include gold, silver, and other precious metals, commodities such as oil and gas, stocks and bonds, and other physical assets, including real estate. We’ll look at the best inflation hedge investments in more detail below.

What Are the Best Inflation Hedge Investments?

Diversifying your investment portfolio is good practice for lots of different reasons, not least hedging against inflation. But what assets are best for safeguarding your investments against the effects of inflation?

Let’s take a look.

Gold

Gold is one of the most popular and well-documented inflation hedge investments. Why? It comes down to gold’s reliability and value retention, as well as its resistance to economic shock and uncertainty.

Generally, the value of gold outperforms or keeps pace with the inflation rate, so the risk of value loss is low compared to cash assets. There have been times, however, when the value of gold has fallen out of step with inflation, so it’s by no means a guaranteed silver bullet against future inflation.

Silver

Silver protects against inflation in the same way as gold. Since it’s a precious metal, and thus a tangible, physical asset, it’s widely considered a safe place to put your money when inflation is on the up.

Like gold, however, silver offers no guarantees against inflation. Indeed, the reason gold is often favored is that silver’s value is more volatile, with more external factors affecting its day-to-day price.

Commodities

Commodities like energy, food, and other essential services are rapidly becoming a popular inflation hedge. And when you think about it, this makes sense, because inflation is driven by the rising cost of goods and services compared to purchasing power.

As inflation rises, so too does the value of commodities and the share prices of companies that provide them. So, investing in commodities such as oil, gas or food can be an effective way to hedge against inflation – provided you choose the appropriate goods and services to invest in from the outset.

Stocks

Investing in stocks can be a safe way to protect your money from inflation, but you need to perform the appropriate due diligence and buy into the right businesses. Remember that, as inflation rises, most companies need to increase the retail cost of goods and services, meaning that your investment should, in theory, keep pace with inflation.

That said, there are no guarantees with stocks, and price volatility is much higher than with precious metals like gold and silver. Still, if you invest wisely and are willing to accept the risk of value liquidity, investing in shares can be an effective way to hedge against inflation.

Real Estate

Real estate is another inflation hedge that has proven increasingly popular over the past two decades or so. Given that property prices generally increase when inflation is on the rise, buying domestic or commercial premises is a safe bet to combat value degradation.

Of course, there are lots of ways to invest in real estate, and some (e.g., becoming a landlord) are more hands-on than others. You can invest in real estate without any long-term commitments, typically through a real estate investment trust (REIT) which effectively treats property like a stock or exchange-traded fund (EFT).

 

At Glint, we make every effort to demonstrate a balanced conversation between gold, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.
 
To learn more, visit our homepage or give us a call at +44(0)203 915 8111.

What is Fiat Money? How it Works with Examples

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Have you heard the term ‘fiat money’ but aren’t sure what it means? Perhaps you want to learn the difference between fiat currency and commodity currency?

You’ve come to the right place. In this guide, we’re taking a close look at fiat money to show you how it works, how its value is decided, and how it compares to other forms of currency. Use the links below to navigate or read on for the complete guide.

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What is Fiat Money?

Fiat money is any currency that lacks actual value. Instead, it’s a legal tender issued and backed by world governments.

Historically, the value of currency was backed by physical commodities, such as gold and silver.

It may surprise you to learn that the money in your wallet is intrinsically valueless. It can’t be converted or redeemed into anything tangible and is instead purely used as a mode of payment.

Fiat money relies on tight fiscal control by regulatory bodies, which allow its use in specific territories by government decree. For this reason, it’s vital that fiat money is managed responsibly and ethically, with efforts made to reduce counterfeiting and mismanagement.

The concept of fiat money might sound modern, but it’s been around since at least 1000 AD, when it was first introduced in China. It didn’t, however, become prevalent in the Western World until the 20th century, when countries such as the UK and US began converting the pound and the dollar into fiat-based currency systems.

How Does Fiat Money Work?

As touched on above, fiat money isn’t backed by commodities like precious metals. Its value instead comes from the faith people have in it and the government tasked with regulating it.

One of the key reasons fiat money was introduced in the first place was to increase the liquidity of day-to-day currencies. Modern paper money is designed to offer a simple, flexible way for people to buy and sell goods, without the need for complex trade negotiations.

What’s more, the nature of fiat money allows for greater buying confidence and monetary freedom. For example, if a business wants to expand its operations by investing heavily, fiat money allows for this without the need for physical commodities to be exchanged – helping to accelerate economic and societal growth.

So, how is the value of fiat money controlled and regulated? Because it’s not reliant on a set commodity amount, other factors come into play to decide its value, including interest rates, inflation, and economic performance. Even things like political instability can affect the value of fiat money, which is why people continue to invest in commodities like gold.

In short, fiat money only works if consumers have confidence in it. This relies on responsible management by standing governments, who must also demonstrate creditworthiness and tight regulatory control.

What Are the Pros and Cons of Fiat Money?

Fiat money is now the prevalent form of capital throughout the world. But why is it used? And what are its strengths and weaknesses?

Let’s take a closer look at the pros and cons of fiat money.

Pros

One of fiat money’s key strengths is it’s an asset that’s easy to control and predict – which is crucial in avoiding economic shocks, such as recession.

Remember: governments themselves control fiat money, which gives them more breathing room in terms of supply and value than other forms of currency. Though care is needed, central banks have the power to create more money when market conditions require it, which can help to cushion the economy against periodic fluctuations.

For example, following the 2008 financial crash, fiat money was used strategically to lessen the impact on the US financial system. How??

Cons

Naturally, as with any form of currency, fiat money has its disadvantages, chief among which being the very essence of its value. Those critical of fiat money and successive governments’ reliance on it question how it will maintain its value in the long term, particularly as more cash is brought into circulation.

Unlike commodities, fiat money is backed by nothing other than its perceived value. But what happens when too much money is brought into the economy, and denominations cease to hold the value they once did?

Critics of fiat money suggest that its value cannot be guaranteed in the future. This is in direct contrast to commodity-based money, for which there is a supply of precious metals and other assets that offer the potential for long-term value.

Remember, too, that the supply of fiat money is seemingly unlimited, while reserves of commodities such as gold and other alternatives like cryptocurrencies, are limited. This suggests that commodities are ultimately more stable in the longer term.

Fiat Money Examples

Fiat money has risen to become the world’s most prevalent form of money, and very few global currencies are now true commodity-based currencies. Well-known examples of fiat money include the US dollar, pound sterling, and the euro, with the US, UK and all European nations operating on a fiat-based currency system.

It’s important to note, however, that many countries use a combination of currencies, including fiat and commodity money. This is to offer the best line of defense against economic shock, while maintaining the right level of value and monetary demand.

Why Do Governments Use Fiat Money?

By now you should have a reasonable grasp of the role, advantages, and pitfalls of fiat money. But why exactly has the currency come to dominate the global economic landscape, with most world governments relying on it as a principal form of currency?

Managed correctly, and fiat money serves as a powerful resource for governments, allowing for predictable and tight control of current economic conditions. If it’s utilized responsibly, it provides the very best means of fulfilling the roles of a strong economy, including storing value, providing a means of numerical accounting, and facilitating streamlined exchange.

Most of the problems associated with fiat money arise from improper management and use. For example, if a government prints too much money, quantitative easing, this can lead to hyperinflation, which can be hugely economically damaging in the long term.

For individuals looking to save money and store it somewhere safe, the fiat system may not offer the most secure or profitable conditions. That’s why we’re seeing a rise in currency alternatives – with gold chief among them.

 

We hope this guide has shed light on how fiat currency works and what it means for your money. If you’re looking for a safe, secure, and reliable way to save and use your money, we invite you to discover Glint – the payments platform that enables you to buy, sell, save, and spend real, allocated gold, even at the checkout, on anything from a coffee to a family holiday using your Glint App and Mastercard®.

At Glint, we make every effort to demonstrate a balanced conversation between gold, crypto and fiat currencies when it comes to purchasing power and, while we strongly believe that gold is the fairest and most reliable currency on the planet, we need to point out that it isn’t 100% risk free. While we have seen a steady increase over time, the value of gold can fall, which means that its purchasing power can also decline.
 
To learn more, visit our homepage or give us a call at +44(0)203 915 8111.