Gold as Emergency Funds

Some time ago we talked about the New Normal Emergency Fund wherein we change the common notion of from saving 3-6 months’ worth of salary (or expenses) to at least 12 months now amid the increasing uncertainty due to the on-going global health crisis affecting the world’s economies.

Now that’s just talking about cash, are there any other options or alternatives? I would say YES and one could find that in GOLD.

Why Gold for emergencies?

I’m not saying you should invest in previous/rare metals trading but rather use it as an alternative emergency fund instead. I’m not saying completely replace an emergency fund with it but rather as a mix.

Additionally, as I’ve observed from those who like buying jewelry, most of them actually have no plans of selling them for profit, especially when gold prices are up.

When you need money, you can pawn your pieces of jewelry to get cash. Here’s a caveat though, Pawnshops will only give you up to 70% of the value of the jewelry as cash. And you need to pay the interest if you want to get it back. So you better think about either pawning or selling it carefully.

So if you find yourself in an financial emergency in the province, you may have to consider alternative emergency fund options such as these.

There’s nothing wrong with buying jewelry. Go ahead and buy them if you’re fond of wearing them, or as a gift for your loved ones. Of course, it has to be a type of jewelry that has value and not the fake ones which may not be useful at all during times of financial emergencies.

Even in emergencies, better diversify your emergency fund sources. Whenever there’s a financial emergency, time is of the essence.

Scam advisory from SSS:

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Iggy Go creates video content on finance, business, savings, & investments at www.youtube.com/iggygo