There are lots of gold assets to choose from, but certain options could make more sense now that inflation is increasing.
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Inflation is no longer hovering near 40-year highs like it was in mid-2022, but we’re not back to normal just yet. The latest inflation report, released this week, shows that the inflation rate was 3.2% in February, up from 3.1% in January. Given the negative impact that stubborn inflation has on traditional currency, many investors are now looking for ways to protect their investments from being eroded by rising prices. And, one traditional hedge against inflation is gold.
When inflation rises, the purchasing power of paper currencies inevitably declines. That makes gold, which carries no counterparty risk and cannot be inflated by central banks, an attractive investment for investors who want to preserve their wealth. If you’re looking to add some gold exposure to your portfolio as an inflation hedge, though, it’s important to understand that there are numerous assets to choose from.
The downside is you’ll need to securely store and insure your gold holdings, which can come with extra work and extra costs. But if you’re seeking a “crisis commodity” to fall back on, physical bullion is about as close as you can get to having intrinsic, universally recognized wealth.
Gold ETFs can be a smart option to consider because they provide exposure to gold prices without the hassle of personally acquiring and storing bullion. They can easily be bought and sold just like stocks through any brokerage account. However, there are small annual expenses charged by the funds, which you may want to consider before taking this route.
Gold mining stocks
Rather than invest directly in gold itself, you can gain leveraged upside exposure by buying shares of gold mining companies. When gold prices rise, the profits and stock valuations of the miners tend to surge even higher. You also have the option of investing in gold mining ETFs to gain broad exposure.
The allure of buying gold stocks is the potential for higher returns, which is great in any economic environment, but can be especially useful during times when inflation is devaluing the dollar. However, these stocks also come with higher risk than just owning physical gold or a bullion ETF, so keep that in mind as you narrow down the options.
Gold jewelry and collectibles
Beyond strictly investment purposes, gold jewelry and collectible gold coins can appreciate in value as inflation rises. While these purchases don’t provide direct exposure to gold prices, the precious metal content gives them an intrinsic material value that helps preserve wealth over time.
And, with inflation weighing on other assets, collectors tend to bid up the valuations for rare, historical gold coins in particular. These types of gold investments can grow in numismatic value alongside the underlying metal prices, providing a unique potential return stream.
Gold futures and options
For advanced traders and hedgers, gold futures contracts provide a way to speculate on future price movements or lock in current prices. However, due to the complexity, leverage and risk of losses that are associated with gold futures and options (beyond the initial investment), this gold investing option tends to be most suitable for highly experienced, risk-tolerant traders looking to make leveraged bets on gold prices.
The bottom line
As always with any type of investing, it’s important to understand your time horizon, risk tolerance and objectives before allocating capital to gold. After all, there is a wide range of gold investments to choose from, and those factors will play a role in determining which one works best for you, especially during periods of high inflation. But no matter what gold asset you decide on, when used judiciously, gold can be an important part of a diversified portfolio, providing a hedge against the insidious effects of inflation.
Angelica Leicht is senior editor for CBS’ Moneywatch: Managing Your Money, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
