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A Practical Financial Tip From A Successful Investor

A Practical Financial Tip From A Successful Investor

Investing in gold and silver can be a smart financial strategy in today’s markets. As governments inflate the paper money supply, investing in precious metals is a way to mitigate your financial portfolio risk. Investing in gold and silver online will provide a safe haven as you diversify your holdings.

Increased demand

When it comes to gold and silver, your chances of making money frequently increase over traditional investment portfolios. There, you can make money when times are good and lose as much during economic downturns.

Metal exchange, on the other hand, is far less complex. You buy it at one price, and you sell it at a higher price. In their millennia of existence in human society, gold and silver have never been worth nothing, which makes them not just secure investments, but very profitable ones due to the consistent demand for them.

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Inflation is not an issue

In metals exchange, your inventory is never truly lost, since they never depreciate, and their prices are not affected by inflation. In fact, when real estate and bank equities can’t cover debt, gold and silver get cashed in, which places yet another demand on your secure investment.

Not a matter of if, but when

Since gold and silver are one of the safest investments ever, the only essential issue is to buy it and sell it at the right times. You don’t need to study stock quotes, dividend payouts, IPO announcements, and/or industry news. With gold and silver, it’s not a matter of “if” you will make money, only a matter of “when.”

Where to purchase?

You can buy gold or silver coins directly from the U.S. Mint. This is the best way to acquire these precious metals, due to the safety of the transaction, quality of the goods, and fair pricing.

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Collectible coins like the American Eagle are generally sold for a premium on the secondary market, so buying from the U.S. Mint directly protects you from scams and shady coin dealers.

How to sell?

The first step is to figure out the price of your metal by going to Kitco. Prices are quoted in ounces, and the site also provides historic prices, so you can determine whether you want to sell now or wait for prices to rise even more.

Industry standards say that 70 percent of the metal’s market value is a good deal, but you should expect most places to offer 30 to 40 percent. You have to decide how much you want to make, and investigate who might give you more, since not too many places will offer up more than 50 percent.

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Physical or non-physical gold and silver?

If you want to invest in gold and silver to protect your investment portfolio, hand it down to your children, or in the case of hyperinflation or currency collapse, then you will probably want to invest more heavily in the physical metal. This means you will be buying gold or silver coins and bullion. On the other hand, if you are interested in actively ‘trading’ your gold and silver investments to make money, then you should invest in precious metals ETFs (these are electronic funds) or shares in precious metals mining companies.

For more information

At Scottsdale Bullion and Coin, you can find some additional information as to the current state of the gold and silver markets.

Different from some other firms, SBC does not regard customers as profit margins, but as people who are seeking in-depth insights, so as to make sound and informed investment decisions.

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For most people, the greatest hurdle to begin investing in gold and silver is logistics. It’s foreign territory, and some hand-holding might be required. SBC works collaboratively with its customers and educates them on the intricacies of the precious metals markets.

By so doing, the company will allow you to formulate a well-supported decision about investing in gold, silver, and other precious metals.

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Last Updated on March 4, 2019

How to Use Credit Cards While Staying Out of Debt

How to Use Credit Cards While Staying Out of Debt

Many people will suggest that the best thing to do with your credit cards during these tough economic times is to cut them up with a pair of scissors. Indeed, if you are already in huge debt, you probably should stop using them and begin a payback strategy immediately. However, if you are not currently in trouble with your credit cards, there are wise ways to use them.

I happen to really love my credit cards so I will share with you my approach to how I use mine without getting into deep financial trouble.

Ever since about 1983 when I got my first Visa card, I continue to charge as many of my purchases as possible on credit. Everything from gas, groceries and monthly payments for services like my cable and home security monitoring are charged on credit. Despite my heavy usage, I have maintained the joy of never paying any interest fees at all on any of my credit cards.

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Here are some tips on how best to use your credit cards without falling into the trap of paying those nasty double-digit interest fees.

Do Not Treat Credit Cards as Your Funding Sources

Too many people treat their credit cards as funding sources for major purchases. Do not do this if you want to stay out of trouble. I use my credit cards as convenient financial instruments so I do not have to carry around much cash. In fact, I hate carrying cash, especially coins. When you buy things on credit, the purchases are clean and you will not get annoying coins back as change.

I do not rely on my Visa, MasterCard or American Express to fund any of my purchases, large or small. This brings me to my golden rule when it comes to whether I will pull out any of my credit cards either at a retail or online store.

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I never purchase anything with my credit cards if I do not have the actual cash on hand in my bank account.

If I really cannot pay for the item or service with cash that I already have at the bank, then I simply will not make the purchase. Remember, my credit cards are not used as funding sources. They are just convenient alternatives to actual cash in my pocket.

Make Sure to Always Pay Off Balances in Full Each Month

The next very important part of my overall strategy is to make absolutely sure that I pay the balances in full each and every month no matter how large they are. This should never be a problem if the cash has been budgeted for my purchases and secured in the bank. I have always paid my full balances each month ever since my very first credit card and this is why I never pay interest charges.

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Using Credit Cards with Rewards

Most of my credit cards are of the “no annual fees” type, including one MasterCard on a separate account I keep at home as a spare in case I lose my wallet or incur any fraudulent charges. However, I do use a main Visa card which does have an annual fee because all purchases on that card reward me with airline frequent flyer points. For me, the annual fee is worth it since I do travel and I get enough points to redeem many free flights.

You have to decide for yourself if you will charge enough purchases on credit each year without paying interest charges to warrant a credit card that rewards you with airline points (or other rewards). In my case, the answer is “yes” but that might not be the case for you.

I occasionally use a MasterCard or American Express card on small purchases just to keep those accounts active. Also, I have been to the odd retailer that accepted only a certain type of credit card, so I find that having one from each major company is quite handy. Aside from my main Visa card which earns the airline points, the rest of my cards are of the “no annual fees” variety.

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So this is how I use my credit cards without getting into any financial trouble with them. This strategy is recommended only if you are not in debt, of course. In fact, it is worth keeping in mind once you’re out of debt so that you can keep your credit cards active and treat them responsibly.

What are your credit card usage strategies? Let me know in the comments — I’d love to hear what methods you use.

Featured photo credit: Artem Bali via unsplash.com

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