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Not sure what to do with old gold jewellery, a coin collection, or bullion bars? Deciding whether to sell or keep it isn’t always as simple as buying low and selling high. There are other considerations, such as sentimental value, inflation hedging, and diversifying your portfolio, but with prices doing well, you should also consider what else you can do with the funds.
Only you can decide whether it’s a good idea to sell your gold, but these are some of the reasons you should consider parting ways with it, and one reason you should hold onto it.
#1 Investing in Your Retirement
How are your retirement savings looking? The majority of workers have not saved enough for retirement by the time they reach 65, meaning they have to delay retirement for years.
The common savings goal is to have enough income to equal 70 to 80 percent of your pre-retirement income. That often means you need enough income investments so that you won’t have to deplete too much of your actual savings.
It’s a great idea to use any extra income to top up your retirement funds.
#2 Starting an Education Fund for Your Kids
The costs of tuition and living expenses are only going up, and an education fund can make a huge difference in terms of your kids’ future options.
When you start an education fund, you give the money time to grow through compound interest. Even if you start small, it’s a good idea to start as soon as possible.
#3 Going on a Dream Vacation
Your retirement savings are right on track, you have a good college fund for the kids (or they’ve already grown up and graduated), and you need to take a break. Why not sell gold that you don’t have any real need for and finally put it toward that dream vacation you’ve always wanted?
#4 Paying Off Debt
Gold can be a great investment and help mitigate the risk of keeping money in the stock market, but it doesn’t provide interest or dividends. While some investments might be worth making even if you have low-interest debt, gold isn’t really one of them. Use those funds to pay off any high-interest debts you have, like credit cards.
Should You Keep Your Gold?
On the other side of the coin, gold bullion has a long history of retaining its value, and it might be something you want to set aside so that you can give it to your kids as an inheritance. If you have a coin collection or gold bars, you can leave both real wealth and something with sentimental value.
However, if you’re giving jewellery or old coins that aren’t bullion, keep in mind that it may not be worth as much as you think. It really depends on the collectors’ market for these things, and if you’ve never had them evaluated or appraised, there’s a chance you’re overvaluing it, especially if you yourself inherited it.
That doesn’t mean it won’t make a meaningful and sentimental gift, but consider having it appraised.