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Here’s how to dabble in the most popular investment of all time
This article was created by MoneyWise. Postmedia and MoneyWise may earn an affiliate commission through links on this page.
When the stock market starts looking turbulent, people repeat the old mantra that “cash is king.” But some people want a better haven for their hard-earned funds — and turn to gold.
For thousands of years, the world’s most popular investment was gold: a pretty metal you could melt, cast, bend, bury and reuse endlessly.
These days, you have a lot more investment options; but if nothing but gold will do, here’s how to invest in the metal.
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That depends on who you ask. Some argue commodities like gold and silver are too risky and don’t offer enough utility as investments, while others argue they can help round out a diversified long-term portfolio.
Many people rush to gold in tough times. The shiny metal has been valuable since the dawn of recorded history and tends to hold up well during stock market dips and periods of high inflation.
Famed investor Warren Buffett has been somewhat ambivalent about gold over the years. “I have no views as to where (gold) will be (in the next five years), but the one thing I can tell you is it won’t do anything between now and then except look at you,” he told CNBC in 2009.
Buffett shocked his followers in 2020 when his company Berkshire Hathaway actually picked up shares of gold mining company Barrick Gold — but he sold them the following year.
You have a few options: You can either buy physical gold bars or coins, invest in gold mining company stocks, buy shares in a gold exchange-traded fund (ETF) or buy into gold futures.
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The most straightforward way to put your money in gold is to buy and store gold bars, coins or jewelry.
To actually make a profit off the precious metal, you need to have a reasonable expectation that your gold can be sold for more than you paid for it. Unfortunately, gold prices are difficult to predict.
In the 1990s, gold barely hit US$300 on a good day. But as financial crises loomed in 2007 and 2008, people did what they always do — they started buying up gold and drove up the price.
Its value shot from US$800 an ounce in 2009 to US$1,900 in 2011. But by 2013, gold was down to US$1,300.
Then, in the summer of 2020, pandemic uncertainty briefly pushed gold to an all-time high of US$2,000 an ounce before sinking back down.
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You can invest in gold without ever touching a flake by purchasing shares in gold mining companies. And, if you like to keep your investments in Canada, this country has plenty of firms to choose from.
The advantage here is that if the price of gold falls, mining companies can often shift focus to another metal.
The disadvantage is that mining stocks can decline alongside the rest of the market, even when the price of gold is steady. If stock analysts don’t like a company’s financials, the quality of its management team or future production prospects, investors may punish its stock price.
You can easily buy commodity stocks through any number of investing apps.
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Investors might buy into gold exchange-traded funds (ETFs) to avoid the uncertainty that comes with investing in a particular company.
These funds, which are traded like stocks, pool investor capital and pour it into a variety of gold and mining companies. Some popular gold ETFs in Canada include XGD-T and HGY-T. ZJG-T is also an option if you want to invest in smaller exploration firms.
Although ETFs are diversified to reduce risk, any of these investments are subject to stock market fluctuations. If the market crashes, the value of your investment could drop even if the price of gold doesn’t change.
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Gold futures are complicated. They’re contracts in which you agree to buy a set amount of gold at a specific price some time in the future.
Traders can strategically buy and sell futures contracts to profit from the changing price of gold. Buyers of futures contracts profit when commodity prices rise. Sellers of futures contracts profit when commodity prices fall.
The contracts typically require a minimum purchase of 100 ounces of gold. Novice investors should exercise extreme caution with futures contracts due to the high degree of borrowing typically involved.
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Before you go King Midas and turn your entire portfolio to gold, take the following precautionary steps:
And remember, if you’re just starting out as an investor, it’s not a bad idea to look into some low-stakes alternatives. One popular app lets you invest with just your “spare change.”
This article was created by Wise Publishing. Wise is devoted to providing information that helps readers navigate the complex landscape of personal finance. Wise only partners with brands it trusts and believes may be helpful to the reader. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
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.
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
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.
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.
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.
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.
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.
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
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.
The updates to probate law make a big difference for Canadian families. Here’s why.
With these changes, probate becomes smoother and more manageable for you and your family.
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
These simple steps make the probate process easier for everyone involved.
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.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
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