The Smart Way to Liquidate a Gold Inheritance

Gold is a time-tested way of preserving wealth and passing it on from generation to generation. The metal is used by everyone from central banks to billionaires to everyday investors as a way of safeguarding their money against inflation, market risks, and political upheaval.

Some of the most prominent investors in the world back their portfolios up with gold bullion. If you are lucky enough to receive gold as a gift or an inheritance from a loved one, understand that what you’ve been given is an asset meant to preserve wealth across time and generations. It’s been used for time immemorial to pass on wealth.

What Should You Do with Inherited Gold?

No one can tell you what to do with your money without knowing your unique circumstances or needs. However, there are circumstances when it makes sense to sell your gold for cash and circumstances where you might consider holding onto it.

When Should You Sell Your Gold?

#1 You’re in Debt

Debt drags down your financial health, and it’s often better to pay it off rather than save. The exception to the rule is when the interest rates on your debt are lower than your returns. For example, you might earn more with a stock portfolio than the interest charges on student debt. If you’re dealing with high-interest credit card debt, the answer is almost always to pay it off. Your “rate of return” is the interest charges you avoid by paying it off earlier.

Unlike many other investments, gold doesn’t provide interest. The asset can appreciate in value, but those are speculative gains.

#2 You’re Saving for a Home

Rising home prices have increased the barrier to entry for first-time homebuyers, and they’re losing out on all the advantages of homeownership.

Despite the hot housing market, it’s predicted that prices will continue to rise through 2021, and if global trends continue, prices in major metro areas will continue to rise based on high demand and low supply.

If homeownership is your number one financial goal right now, selling gold and cashing in on an inheritance can make it happen and help you build long-term equity.

#3 You Need Growth Investments

Let’s say you’ve been saving for a while now. You have an emergency fund, and maybe you have money in bonds or other low-risk, low-return investments. You need something with more upside potential that will grow your savings in a meaningful way. It may make sense to liquidate gold and invest in stocks.

Conversely, if all of your savings are in stocks, you might want to hold onto that gold instead. It offers a great hedge against stock markets, and its prices tend to thrive in a crisis.

How to Sell Your Gold

If you’ve determined that selling gold is the best option for you, take it to a gold business that will buy what you have. You can usually find gold buyers who will pay for gold coins, bullion, and jewellery. Get estimates for what you have and take the best price on offer. You can often get quotes online, so go ahead and compare.



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