How Gold Fits Into Your Savings Plan

How Gold Fits Into Your Savings Plan

You’re doing well financially; you have money you want to turn into life-time savings with a safe investment that will maintain value and grow over time. If you are in this situation, then your next step is finding out for ways to achieve that.

When you’re considering your retirement savings options, the first thing you should do is talk to a financial advisor. An advisor can help you develop a smart investment plan that you’re comfortable with and that fits your future financial needs.

One option you may want to consider is investing in gold as part of a diversified portfolio. Here’s how gold can fit into your lifetime savings plan:

Gold bars

RRSP Gold Investment

Your RRSP portfolio should be a low-risk, long-term plan that’s going to maintain its value over the years. Gold is a great investment for maintaining its value over the long term; as a commodity, there is a finite supply of gold in the world, so despite price fluctuations, it tends to maintain its value in the long run.

When you invest in gold, you know your money will still be there when you’ve retired. That’s one of the reasons gold has long been a popular investment for people concerned about their savings. You can get information on anything related to gold investing, such as fully insured storage options, from your trusted gold dealers. You can visit gold dealer Silvergoldbull.ca and find out how you can safely store your physical precious metals.

Investing in Gold to Diversify

In the past, higher gold values have predictably been a result of declining stock markets, and gold calms down when the stock market does well. Today, things are more unpredictable. That’s why investing in both gold and stocks is a good way of safeguarding your portfolio when the stock market declines and vice versa. Gold investors play one side of their portfolio off of the other, protecting their wealth and making sure they always have investments that are going to grow.

Gold Investments and Inflation

Inflation has not been top-of-mind for Canadian investors in years, with generally low inflation rates prevailing despite low interest rates from the Bank of Canada. Even though the Bank of Canada has been telegraphing its intention to slowly raise interest rates, recent forecasts predict that the inflation rate will steadily rise to 2.4 percent by 2020.

Investing in gold is a way to hedge against inflation, especially when inflation eats away at your rate of return. Gold, which is priced in U.S. dollars, sees it value rise when the value of the U.S. dollar declines.

Gold bar

Buying and Selling Gold

One of the issues gold investors encounter is when they want to cash in their investment; it can be difficult to actually sell gold you’ve invested in. Few gold dealers have the kind of deep liquidity that it takes to buy large quantities of gold, and it can take time to sell gold investments.

That’s what makes a gold dealer like Silver Gold Bull unique; in addition to a large inventory and the ability to supply physical precious metal purchases on demand, they also have the deep liquidity it takes to buy your gold, whether it’s in bars or coins. You can get a quote online for shipping and insurance – once you have it, they send you an insured shipping label.

Takeaway

Investing in gold should be an easy process and gold dealers like Silver Gold Bull with a large inventory and deep liquidity make it simple. Investing in gold can diversify your portfolio, maintain long-term value as an RRSP investment, and protect against inflation.

SMB Authors

This article is one of the excellent contributions from small business owners, decision makers and professionals.