Brothers and sisters, if you are holding all of your liquid assets in the bank, you might as well set a few thousand dollars a year on fire. Those that know better are buying gold. Data for the video came from microtrends.net and goldprice.com. The study contrasts the plight of John Wise and John Doe.
Gold vs. Bank Savings (Jan 2020 – Sept 2025)
In January 2020, they took divergent financial paths. John Doe placed $20,000 into a Bank of America Gold Tier savings account earning 0.02% APY, while John Wise invested his funds in 12 once-ounce Gold American Eagle coins purchased at $1,500 per ounce — a total of $18,000 in gold plus a modest premium.
At the time, both men felt secure. John Doe took the most common approach of relying on the bank, and John Wise trusted gold’s historical performance. But as inflation accelerated during and after the pandemic, the outcomes began to diverge dramatically.
2020: The First Split
By the end of 2020, the price of gold had climbed from $1,500 to $1,893 per ounce, raising the value of John Wise’s 12 coins to about $22,724. Meanwhile, John Doe’s savings account had grown only a few dollars to $20,004 nominally, but once adjusted for inflation, its real purchasing power had slipped to $19,725.
2021–2022: Inflation Accelerates
Through 2021 and 2022, inflation surged, eroding the value of cash faster than bank interest could compensate. This occurred because the American banking sector printed money hand over fist to save the privileged sectors, like the airlines. The purchasing power of John Doe’s $20,000 from January of 2020 dropped to $18,440 in 2021 and dropped further to $17,324 in 2022. Gold, meanwhile, dipped slightly in those years, hovering around $1,825 per ounce, keeping John Wise’s holdings near $21,900 — still well above his original cost.
2023–2024: Diverging Paths
By 2023, the American people began to pay the price for bankers’ incessant money printing. Inflation persisted and gold began to climb again, reaching over $2,060 per ounce. John Wise’s coins were now worth about $24,755, while John Doe’s inflation-adjusted savings had fallen below $16,800. In 2024, gold broke through the $2,600 level, pushing John Wise’s holdings to $31,281, whereas the real value of John Doe’s $20,000 savings dwindled to just $16,204.
2025: The Great Divide
By September 2025, gold prices surged to around $3,833 per ounce, giving John Wise’s 12 coins a total market value of roughly $45,997. John Doe’s account, despite compounding slightly to $20,024, lost $4,200 in purchasing power.
Conclusion
Over nearly six years, John Wise’s gold coins appreciated by more than 150%, while John Doe’s bank savings lost about 21% of its purchasing power. History has proven that cash preserves dollars; but gold preserves purchasing power!