When you begin to consider investing in a new asset, it can be overwhelming, especially if you don’t have much investing experience.
Hearing news about stock market crashes or people who invested their life savings only to lose it all can cause a lot of fear.
But those stories aren’t reasons to avoid investing. Instead, they’re a reason to focus on investing wisely.
Developing a better understanding of the financial world and learning how to adjust your portfolio over time can help to maximize positive returns and minimize potential risks.
Many people believe they need to be rich to invest, but that isn’t the case. You don’t need much to start investing.
Simply putting a small amount of money into an investment account each paycheck allows you to save or grow your money over time and can lead to a promising financial portfolio.
You might think a traditional savings account is a suitable alternative to save and grow your money, and a much safer bet than investing.
But, as many Canadians are seeing now, when money is kept in a regular savings account, you risk that money not keeping pace with inflation due to the small amount of interest it earns.
In this case, inflation can actually decrease the value of the money you keep in a traditional savings account.
By investing your money in the right assets, rather than placing it in a savings account, your money has better potential to keep up with inflation or even outpace it.
This means your money could actually increase in value, earning you more instead of just letting you keep what you have.
There are many different types of assets that you can invest in, all with different levels of risk. Stocks, bonds, and mutual funds are all popular investment choices.
Safe haven assets are assets that are likely to hold or increase their value even during volatile financial times when the stock market is more unpredictable.
Precious metals are considered safe haven assets, the most popular of which are gold and silver. Certain currencies and stocks in utilities, healthcare, and food companies are also considered safe haven assets.
There are various places to buy gold bullion in Canada, allowing customers to purchase bullion coins and bars. Gold bullion is kept as reserves at financial institutions and central banks.
When you buy gold or silver bullion, you are purchasing its weight equivalency of the precious metal. It’s a tangible product that you can buy and hold, rather than a piece of paper saying you own it.
Gold is considered an investment vehicle and can be included in your RRSP, which means it’s an investment that can provide tax advantages and other financial benefits.
Investing comes with many options. Whether you are just starting out or want to take more ownership of your investment strategy, safe haven assets, including gold, are a solid option.
Research the different safe haven assets that could be a fit for your portfolio, and consider investing in a few to ensure your money continues to grow over time.