What Are Your Options When You Inherit Gold Coins?
Published 17th of March, 2022
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Gold may seem like an unconventional investment, but to many, it’s one of the most trustworthy assets for maintaining wealth against inflation and global uncertainty.
Whether gold is something you would use to save personally, you may find yourself inheriting a collection of gold coins or gold bullion bars, and you’re wondering what to do with it.
Fortunately, many people invest in gold because it’s easy to convert to cash, even though it’s a physical asset, and they’ve collected coins or bars with the express purpose of leaving it as a form of wealth.
Add Gold to Your Retirement Savings
If the idea of gold’s security appeals to you, you can always consider holding onto gold coins. If you do, you will need to follow a few steps to store it safely:
-A safe, safety deposit box, or another secure place to store the coins.
-It’s stored somewhere dry and away from corrosives.
-Gold and silver are stored separately.
-Keep the location discreet, even from friends and family.
-An insurance policy that will cover the full value, as most home insurance policies have special, lower limits for gold.
Alternatively, you can convert the gold into cash and invest it in other ways. Selling gold coins in Canada should be a straightforward process. Find a gold buyer with a good reputation that posts their rates per ounce online or publicly.
When it comes to taxes on inherited gold, Canada does not have an inheritance tax. Assets like property, stocks, and other investments (such as gold), are taxed as though they were sold at fair market value immediately prior to death. It is then taxed on the deceased individual’s deceased income tax return, and capital gains taxes will be paid if they have appreciated since they were purchased.
Add the Proceeds to a Down Payment
A popular option for any inheritance is turning it into a down payment for a home. With property becoming excessively expensive in Canada, many homebuyers find it impossible to get on the property ladder without some kind of financial assistance from family.
Invest in Stocks and Bonds
You may prefer more conventional paper investments to keeping your money in precious metals. It can certainly be easier not to have to worry about where physical investments like gold are stored.
Like gold, bonds tend to be a conservative investment, i.e., an asset that often performs better during market turbulence and recessions. However, it helps to pay attention to the difference between bond yields and inflation, as they may lose ground in the long run.
Under high-growth economic conditions, stocks are likely to increase your wealth at a much faster pace than gold, although that comes with the caveat that prices can never be accurately predicted.
Start a RESP for Your Kids
If you’re already on the property ladder, you may want to put the inheritance toward your children’s futures. Using the funds to start a Registered Education Savings Plan can help you gain access to matching contributions from the Canadian government.
A gold inheritance shouldn’t be a source of stress. It’s simple to turn it into cash if you know who to approach, and you have plenty of options for other investment strategies.