Vietnamese Prefer to Save in Gold

The people of Vietnam generally prefer to save their money in the form of gold rather than keep it as cash or place it in the bank. This occurs because the people of the country feel that this approach is a safer way to save. Citizens of this country are generally distrustful of banking systems and believe that having money in gold helps to fight inflation because gold can be sold at any time for a cash value. When gold prices rise, citizens of the country remain committed to purchasing gold instead of placing their money in a bank.

Citizens worry about devaluation of their money by the federal government, which has happened in the past. This means that inflation occurs and their money is longer worth the same amount that it once was. Gold has a standard around the world, so when people have gold instead of money, they are still able to sell it for the amount that it is worth. The economy of this country does not affect the amount of money that they can sell it for.

Often citizens of this country keep their gold at home in safes or in safety deposit boxes. Due to the country’s history, which is filled with turmoil and war, citizens still believe that this is the best way to retain any kind of wealth. Recently the federal government has begun trying to keep citizens from purchasing an excessive amount of gold, but gold is still the main indicator of wealth within the country.

The Vietnamese people also prefer to save their money in United States dollars than in the currency of their home country. The U.S. dollar is more stable than the Vietnamese dong, which often experiences changes. When gold prices are particularly high, citizens of the country will purchase U.S. dollars and keep them in safe places in their homes. The people of this country do not have very much faith in their economy or the federal government’s ability to keep money at an even rate of exchange over time.

Gold is the preferred currency to use for large money deals in the country. Property transactions are almost always completed in gold bars rather than Vietnamese dong. This proclivity for gold shows the world that Vietnam is not a stable environment to trade within, but the purchasing of gold bars also does the country harm because the federal government cannot keep the gold in reserve.

The citizens of Vietnam prefer to save their money in gold due to the instability of their economy. Large transactions are performed with gold instead of Vietnamese currency.

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