Tips & Tricks

Should Your Family Be Buying Gold?

Gold is a valuable resource that has been used for centuries to preserve wealth and create luxury goods. Many families are now choosing to invest in gold as a way to protect their finances during uncertain times. It’s also the perfect way to build a bit of a nest egg for the future, so your kids are always looked after. You might decide to cash it in when they need money for their education or for a house, or even a wedding.

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Here we will discuss the benefits of investing in gold, and then list some ways that beginners can get started.

Why Invest In Gold?

Gold is often seen as a safe investment because its value tends to stay consistent over time. It’s also a very liquid asset, meaning you can easily sell it when you need the money. Gold doesn’t corrode or tarnish, so it will always have some value, even in difficult times.

When you compare this to things like stocks and shares, it’s a much safer option. Especially for your average family that doesn’t really know anything about the stock market.

It’s also pretty easy to get started with investing in gold. Simply check out the current Price of 1 oz of gold in Canada (or wherever it is you are), decide how much you can comfortably afford, and then purchase this with the help of a dealer. However, first, you’ll need to decide what form of gold you’ll invest in. 

How To Invest In Gold

There are several ways you can put your money into gold:

Buying Gold Bullion

This is the most common way to invest in gold. You can buy coins or bars from a dealer, and they will be stored for you in a secure location. You actually own a big lump of gold that you can sell whenever you like.

The only problem is that you will need to invest a bit more because you need to buy at least one gold bar. You also need to deal with storage too, which is an added cost.

Gold CFDs

CFDs (Contracts for Difference) are a way to trade gold without ever owning the metal. You simply bet on the price of gold going up or down, and if you’re right then you make money. You can invest as little as £100 in a CFD, so it’s perfect for beginners. It’s easy to do on a platform like Metatrader 4, even if you haven’t traded before. The downside is that there is a risk that you could lose money if the price of gold falls, but that is the same risk involved with any kind of investing.

Gold Mining Stocks

If you don’t want to deal with buying and storing gold, then you could invest in a gold mining stock. This is a company that mines for gold, and when the price of gold goes up so does the share price of the company. You can buy these stocks just like you would any other kind of stock, and they are a good way to get started with gold investing.

The downside is that these stocks are very volatile, and they can go up or down a lot in price. So, you need to hold onto the stock for a while if you want to generate money.

Even if you only have a small amount of money to invest, it’s worth putting it into gold because it could help you build a better future for your family.

Rachael is a 31 year old mum to 10 year old Luke and 5 year old Oscar. She lives in England and writes about family life, crafts, recipes, parenting wins(and fails), as well as travel, days out, fashion and living the frugal lifestyle.

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