Gold can mean many things to different people. It’s renowned for its long-term, durable value. It’s often given as a gift in the form of jewelry. In the shape of a ring, it can be symbolic of a deep bond and relationship. Sometimes it comes into your life through an inheritance.
Some people choose to hold onto it forever, while others would rather capitalize on its value and sell it.
For the past couple of years, demand for gold bullion has grown consistently, and the opportunity to maximize the amount you can get may have arrived.
But if you’re going to sell gold, it doesn’t hurt to have a plan for what you’re going to do with those funds. Investing that money smartly can make a real difference to your long-term finances.
Start By Making the Most Money You Can
When you have a big plan for the cash you get from selling gold jewelry and coins, you want to make sure you make as much money as possible.
You need to know where to sell gold for the best price possible.
Jewelry and coin shops are usually where you can get the best prices. They’re experts in the market and know the real market value of designer jewelry and rare coins. They will evaluate what you have and give you an estimate. It doesn’t hurt to shop it around and get several quotes.
Invest in Your Retirement
The secret to your retirement savings is compound interest, and unfortunately, gold is not an investment that builds interest.
The beauty of compound interest is that it helps your money grow exponentially, allowing you to save more than you ever could if you were only putting away extra income.
If you want to take advantage of compound interest, invest in assets such as:
- Certificates of Deposit (CDs)
- Treasury Securities
- Real Estate Investment Trusts (REITs)
Pay Off Debt
Another great destination for the money you can make from gold is debt. Paying down debt gives you more freedom to do what you want with your income.
You’ll have more disposable income to spend on yourself, save for your goals, or make plans.
Becoming debt-free gives you more breathing room every month.
Using gold to pay off high-interest debt like credit card balances will save you a lot in interest charges, but it can also be a good idea to put those extra funds toward student debt or your mortgage.
Put It in a Trust
You don’t have to be wealthy to start a trust for your kids. You can start small and let safe investments grow until it matures.
When your kids are young, you have the advantage of time on your side, so again, you can sit back and let compound interest do the work.
A trust will give your kids a huge leg up when they’re older. They can put it towards education, a down payment for a house, or use it to keep them afloat while they take on a career-starting internship.
There’s a lot you can do with gold coins or jewelry that you have no use for. Turn the extra cash into the seeds of your future financial success!