And this is perfect summary of where Tally has gone wrong.
You turned cash into an asset that you didn’t need to do anything with, you just had to wait for the ups and downs of the market.
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The problem when people talk about fiat (pounds, dollars, euro etc) bank balances they are always stating the nominal figure (not inflation adjusted). And people always compare gold to stocks which isn’t a real comparative. I prefer to look at a diversified portfolio that includes stocks both low and high risk.
I use gold as a save place to store my currency long term, stocks are a big gamble, they can and do go to zero or can provide a good return if you are able to leave them long enough.
I’ve had a tally account for nearly a year, since first release and during that time gold has risen approx. 30%
I agree with others, I don’t see Tally as a primary account as there are times it doesn’t make sense to spend gold below your purchase price so direct debits would be a no, no for me.
Going on the example given above £100 put into tally 12 months ago – 12 x 0.1% + 30% increase in gold, would give me a gold converted to fiat, purchasing power balance of approx. £128.57. Where as £100 put into a traditional bank, ranging from – to + interest rates, so 0% and with a free account with no monthly charges, after 12 months my nominal £100 would have the purchasing power of £98 (taking into account 2% inflation (obviously real inflation is closer to 10% than 2%)).
You can’t guarantee the price of gold going up but you can guarantee the rate of inflation destroying your wealth the longer you hold it in fiat currency. There’s a reason the gold price has risen about 571% over the last 20 years and that is because inflation has destroyed the £ so it takes more of them to buy an ounce of gold now, and that’s only getting worse, my tally is used for saving £’s I don’t need to spend but want to retain value when I do want to spend. I have investments/speculations in various other things but gold is my safe fall back that I don’t worry about day to day.
Some ETF’s may generate a slightly higher return, but I haven’t looked in to all the fees and that balance isn’t instantly spendable via a Mastercard and you can’t transfer the gold instantly to someone else. It is probably not allocated and insured so you’d struggle to get the value out if something went wrong.
As for Ivan1954 example, that is in no way a simpler way to achieve a profit using gold, I have done what you describe and the costs of premium prices, postage, insurance, seller fees, your own time etc are a massive overhead. It is much quicker, easier and cheaper to buy tally (gold) through the app instantly at spot price and sell instantly at spot by transferring back to your Monzo account, your overheads and cost wouldn’t even come close to 0.1% a month.