When thinking about buying gold coins, a lot of people simply throw up their arms and say they don’t have the money.
Well, in some cases that might be true, but in most cases it isn’t.
Here are three fast ways to find enough cash to begin buying gold.
1. Sell some of your junk
Just sell all your junk. If you have stuff in your attic or basement that you haven’t looked at for the last year, sell it. I’m not talking about your family albums and the other stuff you want to keep forever. I’m talking about the stuff you stored out of sight because you no longer had space in your living areas.
All those old books? Sell them on Amazon.com. The old coffee makers, food mixer, kitchen stools, skis, clothes, bicycles, cameras, skateboard, outgrown children’s toys – and everything else – sell them on eBay or in a garage sale.
And if you rent a storage unit, that’s a real sign that you are buying way too much stuff you don’t need. Do you really need to pay to store that old couch, street hockey net or BBQ? No, you don’t. Sell all that stuff, and save on the storage fees.
Then put aside all that money in a stash to pay for your first few gold coins.
2. Spend less on stuff you don’t need
Now it’s time to think about the stuff you buy over the next few months. If you don’t need it, I mean really need it, don’t buy it. You already have a cellphone that works just fine. Do you really need to buy another one just because it’s cool? Do you need to pay $100 for those jeans or running shoes because of the label? Do you really need a 42 inch flat screen TV if you already have a perfectly good one that’s 40 inches? Do you really need a new gaming console? Will you actually watch all the stations on that new cable bundle?
3. Pay less into your mutual funds or other investments.
Ten or twenty years ago it made a ton of sense to invest some of your income in the stock market, usually through mutual funds. If you are still putting aside the same amount each month today, you might want to divert some of that money into buying gold.
There was a time when you could get a good return on stocks and mutual funds. But it’s not like that anymore. The rise in the price of gold has beaten the S&P index over the last year, and over the last 10 years. In other words, gold has given you a better return on your money than the stock market.
With the world’s economies in the shape they are right now, it makes more and more sense to build a reserve of wealth in the form of gold.
Over the months and years to come, you can find more money to invest in gold simply by being more careful with your spending, and diverting money from any regular investments you make in mutual funds.
Remember, if things get worse around the world, you want a good part of your wealth outside the banking system. You want some wealth that won’t crash if or when the economy crashes.
That’s why it is making more and more sense to own gold.
About the author: DH Kenrick is a student of world economics and a committed gold enthusiast. Follow me on Google+
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