The interest rate of the European Central Bank has reached its lowest level since the creation of the monetary union; the current interest rate is 0.5%. This more specifically refers to the interest rate the ECB asks in return for providing funds to banks. This leads to a declining interest rate on the average consumer’s traditional savings account.
Due to the interest rate cut of the ECB, banks are less willing to pay a higher interest rate on normal savings accounts. And the Central Bank already offered a low interest rate to begin with. The underlying reason for the interest rate cut imposed by the ECB is the expected impact that it should have on the consumer. The declining interest rate should encourage the average consumer to spend his/her savings, thus giving the European economy a well-needed boost.
The classic savings account: onerous investment
In short: parking your money on a traditional savings account is often a pointless effort. Especially if also inflation and the accompanying loss of purchasing power are being charged. This is exactly why investors worldwide are opting for alternative investment options such as diamonds.
Apart from boosting the European economy, a reduced interest rate at the ECB should lead to lower mortgage loans and cheaper investments for companies. However, not all experts agree. Especially in the distressed, South European countries this sought-after effect is highly uncertain.
Investing in diamonds: a safe choice with high profitability
Due to the insignificant interest rate on savings accounts more investors opt for a durable investment such as investment diamonds. Human psychology plays an important part in this evolution: after all high quality diamonds never lose their value and prestige. This makes them an especially popular investment in times of crisis.
For investors with an eye for aesthetics, investing in diamonds is always a cut above all other investment options or obligations. If you would like more information about investing in diamonds you can always contact BAUNAT for advice on certified diamonds with a high return.