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I’ve been asked to include a bit more about other ways of passive income that aren’t the usual courses, books etc that are talked about most often when we mention passive income.
While this isn’t an investment blog (and this isn’t financial advice or any other kind of advice, your investments may go up or down etc), I want to share something about a different option so you can do your own research and make your own decisions. Passive income is about cashflow – especially when things are tight and in emergencies – and this post is about ‘saving for emergencies’ if you like.
I don’t offer a service to help you make investment decisions so this is a contributed post from people who offer these things. There is a bit of jargon which Google will help with. The bottom line is that shiny things always have value even when everything else goes bonkers for a bit.
I used Ann Wilson’s Financial Freedom University to learn about investing for myself (legal note: I don’t offer advice) so that’s a good place to start. She has lots of free stuff and a book as well as her paid programmes. You can find her at The Wealth Chef.
Is it a Realistic Goal to Trade Gold in 2018?
The current economic situation in the UK is unsettling for businesses. Traders are always looking for secure commodities to trade as a fall back option. Gold has a solid history of relevance to the financial markets. If at some point currencies go into hyperinflation and Bitcoin investments tank, gold will remain a medium of exchange due to its intrinsic value. Cash and paper assets have no other value than trade, while gold can be used for many other things like constructing electrical and space equipment, medicine, and making jewellery.
In times of economic turmoil, investors have always looked at gold. That’s because the precious yellow metal’s value is inversely proportional to fiat currencies and other investments. When currencies go down, the prices of gold go up and vice versa. If in case currencies or any other paper assets decline sharply this year, it would make great sense to trade gold.
Whether the precious yellow metal is behaving like a bull or a bear, the market offers high liquidity to traders due to its unique position in the global economic and political systems.
Financial advisers believe that 2018 will be a year for gold because of the level of risks that most popular investments offer today. Based on FXCM’s detailed gold price chart, it seems that gold has already bottomed at the beginning of 2017. Its prices are slowly getting corrected, and will most probably have a steady increase throughout the year. Apart from the surge of risky paper investments, the current U.S. economic policies that hurt the status of the greenback as a safe haven is fuelling the rise of gold prices. That being said, analysts are confident that the trend in gold prices will carry on to 2019 where the precious yellow metal is expected to reach even higher prices.
Since gold prices are rising, so does other commodities like copper, zinc, and steel. Commodity prices rise amid uncertainty, and more people turn to physical assets to cover their wealth.
How to trade gold
Trading gold isn’t hard to learn but it does require some experience and expert handling.
Not all merchants will buy physical gold
While gold is rare and high in value, keep in mind that not all merchants are willing to hold them. Some buyers only deal in gold coins or jewellery that they’ve sold themselves. If in case merchants buy back their own gold, it will be at a lower price.
That being said, remember to only liquidate gold in times of emergency. Physical gold doesn’t usually sell for the same price that you bought it, because merchants make money off the spreads they make on each transaction.
Buying and selling gold online
One of the smartest ways to sell gold is by trading online. That’s because when you buy good delivery gold online, not only are you getting the precious yellow metal at market value but you also have the option of letting the online merchant store it for you. Having gold investments in different countries make sense in an economy full of uncertainties.
Gold that can be bought online is sold per ounce, not full bars or coins. This makes it a great option for those who don’t have significant capital for trading.
Trading gold stocks
For some traders, part of the appeal of gold is being able to hold it. However, for those who want to simply trade gold, the stock market is a good option. Trading gold stocks is also great for those with limited trading budget, as gold stocks aren’t as expensive as owning actual gold.
Exchange-traded funds (ETFs), which are listed on the stock market and can be traded just like shares, are a good option for beginners learning the ropes when it comes to gold. Look for physically-backed ETFs this year instead of “synthetic” gold-backed ETFs. Physically backed ETFs hold actual gold in vaults, and investors who buy shares in the fund own a part of that gold.
Gold has been a popular store of wealth for many centuries. Unless the world can find a physical commodity that’s more valuable and as easily mineable as gold, most economists agree that the precious yellow metal will always remain significant in the financial markets. This is the reason that no matter the year or current financial trends, gold is always a realistic option to trade.
If you need help starting out learning about investing, try The Wealth Chef from Ann Wilson.
If you want someone to help with investment decisions, try an IFA (independent financial advisor) like Cleona Lira.
However, if you are looking for a safe space and the support you need to sort out the money side of your business book an explore call with me.
We’ll explore what you need and how I can help, so you can feel yourself again.
To your financial self care,
This is a contributed post with image provided by the contributor.