Everyone is worried about the economy, and some have even been thinking about taking money out of banks and putting it into more tangible assets. However, is it a good idea to sell your house and buy gold?
Why Buy Gold?
If you were heavily invested in the stock market or the housing market in the past decade or so, you may already know the answer to this question. Gold is something that is real, has value in society, and has trended up in value over the past decade. People tend to think of gold as being a safe asset because it is accepted around the world as being valuable. Indeed, buying gold as one portion of your investment portfolio is not a horrible idea. Gold coins are the easiest to obtain if you want to hold your investment in your hands, but there are securities options as well.
No one can argue that the housing market has been doing poorly for the last several years. This may make you think that you should definitely get out of your house as soon as possible. This is generally not true. If you can afford your mortgage payment, you are most likely better off in your home. If you are upside down in your mortgage, selling it will not profit you and may harm your credit. Additionally, the chances are better than average that if you stay in the home, over the next decade or so, you will eventually accrue equity in your home. If you own your home outright, or if you already have equity in your home, keep that investment safe by staying in your home. Not only is it an asset that you can use, it will also continue to gain value while you use it.
If you sell your home hoping to use the money you have earned in equity to fund your gold purchase, there could be numerous negative consequences. First, you may not be able to sell your house in this market without deeply cutting the price. This would mean that your net worth could actually decrease. Next, purchasing gold in large quantities can be quite difficult. If you choose to purchase actual gold, as opposed to bonds, you would also have the problem of storing and insuring your investment. Finally, if you know very little about the gold market, it can be very easy to be swindled by predatory companies who are taking advantage of the economic downturn and preying on the public’s fear of an impending economic crisis.
Is There Any Reason I Should Sell My House and Invest in Gold?
Yes, if you absolutely cannot afford your mortgage, and you are going to lose your home, try to sell it. Furthermore, if you want to downsize your living expenses overall and want to rent or buy a smaller home that will cost less each month, selling is a good option for you as well. If you have compelling reasons, other than simply wanting to invest in gold, to sell your home this may be a good option for you.
If you are thinking about investing in gold, be sure to learn as much as you can about the process before you begin. Even if you do not sell your home to fund your gold investment, there is still quite a lot to think about. Hopefully, you will be thinking about it in the comfort of your own home.
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