Expand your financial buffer by selling jewelry – DordtCentraal

Expand your financial buffer by selling jewelry – DordtCentraal
Expand your financial buffer by selling jewelry – DordtCentraal

Inflation again rose sharply in the Netherlands, by 13.6 percent in August compared to a year ago. This makes it more difficult for a large part of Dutch society to make ends meet at the end of the month. After all, where purchasing power fell, incomes hardly increased. In order to expand the financial buffer, it can be interesting for households to sell jewelry to a buyer of gold. Buying gold is not the only option, often such parties also buy silver. Selling gold jewelry and other valuable possessions immediately yields extra cash, which is used to obtain more financial security or to pay outstanding bills.

Gold as an investment in rising gold prices

While some households sell their gold possessions to free up cash to pay for fixed costs, others choose to buy gold. The aim of this is to take advantage of the rising gold price, with which they can somewhat compensate for the sharp rise in inflation. There is no guarantee that the price of gold will rise. However, it is stated that gold is generally a safer investment product than, for example, shares or currencies. Such products are much more volatile than gold and other precious metals. Investing in gold is only recommended to people with sufficient wealth, of which they will not need the part invested in gold in the coming years. The price of gold behaves cyclically, so a decline in the price is generally followed by an increase. Patience is important for this reason.

Inflation still mainly caused by energy prices

As in recent months, the rising inflation in August is largely due to rising energy prices. The price of gas recently rose further and it is not expected for the time being that it will fall sharply in the coming months. This means that many households are bracing for the winter months, when gas consumption is logically much higher than in the summer period. In addition, the percentage of households with a fixed-rate energy contract is decreasing further. Anyone who concluded a contract in the past at a competitive rate (compared to the present) is now confronted with considerably higher monthly costs. For some this means drawing on the reserves, for others reducing other expenses. This means that something that could previously be funded is now (temporarily) no longer possible.

Government purchasing power compensation

Plans are expected to be presented on Budget Day to compensate for the sharp decline in purchasing power of Dutch households. For example, the minimum wage will be increased by ten percent, leaked recently. Income tax will also fall next year.

The article is in Dutch

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