If you have gold jewellery, gold coins, or other valuables and heirlooms made of precious metals, there’s more you could be doing with it. Gold can is a valuable asset. There’s a reason you can often fetch a good price from old jewellery, watches, or better yet, bullion coins.
But it’s not an asset that pays interest or dividends. It sits in a drawer or a safe. Sometimes prices go up; sometimes they go down.
If you’ve been asking yourself, “Should I sell my gold?” consider what you can do with the money you earn from the sale. Investing the proceeds is a smart way to turn gold into an investment that will continue to benefit you financially.
1. Pay Off Debt
Before you invest, consider paying off your debt if you have extra cash. Whether or not it’s the best use of your cash depends on interest rates vs. investment returns. Here’s what to consider:
- High-interest debt such as credit cards will outpace almost any investment and should be your top priority.
- Low or zero-interest debt doesn’t cost as much, and there are investments that can grow faster than the cost of carrying these balances.
- Avoid high-risk investments that could lead to you losing principal. Paying off debt is always a sure thing.
2. Invest in Growth Stocks
When it comes to your retirement savings, growth stocks come with a certain degree of risk, but they can also deliver high gains. Growth stocks are shares in smaller, rapidly-growing companies that are investing their profits back into their own growth rather than paying dividends to shareholders.
This contrasts to value stocks, which tend to be older, established companies that redirect profits to shareholders rather than expansion.
3. Save for Your Kids’ Education
There are other options for investing than your retirement that can make a great deal of sense. An education fund will give your kids a major advantage when they pursue their post-secondary education. You can help them avoid going into debt to finance their education or at least significantly offset those costs. You’ll be putting them in a stronger position after they graduate to buy their own home or start a family without student loans hanging over their heads.
4. Buy Income Investments
Income investments are a smart place to put your money as you get closer to retirement. Income investments provide you with regular payments without requiring you to sell anything. When you retire, this income is essential for covering your everyday costs without having to draw down your savings each month.
Even if the income doesn’t cover the full cost of living, it provides you with a significant buffer.
5. Buy Into a REIT
REIT stands for real estate investment trust, and it’s a way to generate income investment that makes a lot of sense for retirees. It allows individual investors to put their money in real estate without demanding all the capital it would cost to buy a rental property.
This also means you can invest in different types of properties, including office or commercial space, which would be well beyond the means of most individuals.
Turn your gold into an investment that will help you for years to come. By investing, you can grow the value of old jewellery or coins well beyond their worth today.