Gold can feel reassuring when the financial news gets loud. But reassurance deserves a price tag, just like any other purchase.
Before opening an account, finish this sentence: “I want gold because…” If your answer is simply “I am worried,” take another step. What are you worried about, and how would this purchase help?
Put the comfort into numbers
Imagine a hypothetical $25,000 purchase with $300 in annual account and storage costs. That is 1.2% of the initial amount each year, before purchase and selling costs. These are example numbers, not a typical quote.
Would you still feel comfortable if the investment fell in value while those charges continued? That question is more useful than imagining only the upside.
Compare the alternatives
Write down two other ways you could address the same worry. Perhaps you need a clearer spending plan, a review of your investments, or a better understanding of where your money is held. A conversation with an independent adviser may help separate the problem from the product being sold.
Your next step
Make a two-column note: “What I hope to gain” and “What I am willing to pay.” Include money, time, and complexity. Peace of mind has value, but you should be able to explain what you are buying.
Wishing you a secure and prosperous retirement,
John E.
Wealth Money Catalyst
NO FINANCIAL ADVICE
Wealth Money Catalyst is a research and publishing entity and does not provide legal, tax, or investment advice. Consult with a qualified financial professional before making investment decisions.