Can’t Afford to Buy Gold? Here’s a Simple Plan to Get You on Track

There’s an old saying that goes, “the best time to plant a tree was 20 years ago. The second best time is now”. Buying gold has a similar story. The best time to buy gold was twenty years ago. The second best time to buy is now.

I have to admit I jumped on the gold bandwagon rather late. I wished I’d done it a long time ago. When I heard recommendations to buy gold, I always said “I can’t afford it”. The reality is I could have afforded it back then, even on my salary.

Now, I make more money and truly can’t afford gold. I have committed to buying a little every month anyway. Some gold is better than nothing. Over the long run, the monthly additions will add up.

I still put investment money into stocks. When stocks are making money I’ll continue doing that, but when they’re losing money, I get out until they are making money again. I hold cash until a bull market returns, then I have the money to buy near the bottom, when stocks are cheap.

When I put my money into gold, I don’t feel the loss if the price decreases, because I still have the gold I purchased. I enjoy owning the coins I buy and know that they are an investment in the future. I know I can sell them (I think) when the time is right, to profit.

When I was a young adult in the 1970’s gold was $35 an ounce, where it had been since the 1930’s. I had no incentive to buy, even if I could afford it, because it didn’t go up in value. That’s still true today. Gold doesn’t go up in value. It holds its value while our government devalues our money.

In the 1990’s when gold was $300 an ounce and I was making much less money than I am now, I saved $300 a month. When a friend recommended buying gold at that time, my reply was “I can’t afford it”.

Now, with gold ranging in price from $1600 to $1800 an ounce, I’m convinced I should be buying all I can get before the price goes up more. I’m not in the financial position to buy an ounce of gold every month, so I’ve made the commitment to buy fractional denominations. In hind sight, of course I wish I’d been astute enough to start buying gold a long time ago. I’d be wealthy by now.