Are you on the fence about selling gold jewellery, coins, or heirlooms? Gold can often have a sentimental value, especially if it’s inherited or it was a gift from a loved one. At other times, it may be a memento from a relationship you no longer have, or it was meant as an inheritance that would help you financially, and letting it sit in a safe may not be as productive or helpful as turning it into cash.
Having a plan for that extra money can help you decide whether it’s worth selling. If you can put it to work for you or help you do something you’ve always wanted to, you can properly weigh the pros and cons of selling it.
How to Get the Most Before You Sell
First of all, you should know how to sell gold. Living in Toronto, you have more options than just about anywhere in Canada. If you’re wondering where to sell gold in Toronto, start with jewellery or coin shops, depending on what it is you’re selling.
These shops tend to offer better rates than pawnshops or other options, particularly if you have fine bullion gold coins or designer brand jewellery in good condition.
How to Spend Proceeds from Gold
#1 Pay Off Your Credit Card Bills
Credit card bills are one of the biggest obstacles standing between you and good financial health. It can stop you from buying a house, going back to school, starting a family, opening your own business, or just about any major life goal.
Debt advisors often suggest earning extra money as a way to pay off credit card bills. If only it were so easy! But the gold selling price in Canada is fairly strong compared to the last decade, and you could save yourself considerably in interest rates if you pay it down sooner than later.
If you are paying off debt with gold, act now before debt problems become too urgent. You can usually earn more if you take your time to get it evaluated.
#2 Invest the Proceeds in Your TFSA or RRSP
The stock market can feel like a pretty intimidating place to put your money. Reading headlines about market crashes makes it seem like a big gamble, but not owning stocks means you could be missing out on major gains.
Only about half of Canadians put their money into non-cash investments like stocks, mutual funds, or GICs. These investments are the best way to get your cash to grow and catch up on goals like retirement.
#3 Build an Emergency Fund
Your first defence against debt is an emergency fund. You know how surprise expenses can throw a wrench in your budget. If money’s already tight, you need something set aside that you can rely on when you have sudden car repairs, home repairs, expenses for the kids, or bills. An emergency fund is a valuable safety net.