Did you know that even if you have a 401k for retirement, you could still have an IRA? Robinhood has the only IRA that gives you a 3% boost on every dollar you contribute when you subscribe to Robinhood Gold. But get this, now through April 30th, Robinhood is even boosting every single dollar you transfer in from other retirement accounts with a 3% match. That's right, no cap on the 3% match. Robinhood Gold gets you the most for your retirement thanks to their IRA with a 3% match. The offer is good through April 30th. Get started at Robinhood. Com/boost. Subscription fees apply. And now for some legal info, Claim as of Q1 2024, validated by Radius Global Market Research. Investing involves risk, including loss. Limitations apply to IRAs and 401(k). 3% match requires Robinhood Gold for one year from the date of the first 3% match. Must keep Robinhood IRA for five years. The 3% matching on transfers is subject to specific terms and conditions. Robinhood IRA available to US customers in good standing. Robin hood Financial, LLC. Members, Sippik, a registered broker dealer. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand.

It's time for some money rehab. So last week, gold prices hit near record highs. And when prices change in the market, I want us to all get into the habit of asking ourselves, How can I get rich off this trend? Because we always can if we're thoughtful about the strategy. And that's what I'll be teaching you about today. So at the most basic level, there are two ways to profit from high gold prices. You can either sell physical gold or you can invest in the asset. Which Whatever route you choose, the strategy is going to be the same. Buy low, sell high. But even though the strategy is the same, it hits different, depending on whether we're talking about owning physical gold or investing in it. Now is a great time to sell physical gold, but it's actually a relatively worse time to invest in gold. I'll break that down in a sec. But first, we have to understand the price trend and why gold is having such a moment right now. As we know, the Fed has signaled that they might be able to start lowering interest rates this year. Yay. Actually, when interest rates go up or go down, they tend to take the value of the dollar with them.

So as interest rates have gone up over the last two years, the value of the dollar has been strong, which is why if you've done any international travel over the last year, you've probably been surprised by just how cheap it was to eat at nice restaurants, depending on the currency, of course, of where you are visiting. Gold, however, has an inverse relationship with the value of the dollar, meaning gold and the dollar are on two ends of a seesaw. When one goes up, the other goes down. So with the talk of interest rates going down, pros are expecting to see the value of the dollar get weakened, and as a result, the price of gold is on the up and up. Right now, gold prices, like I mentioned, are near record highs. Gold is selling for over $2,000 an ounce right now. And if you're thinking to yourself, How much is an ounce again? Imagine holding 11 pennies in your hand. That's the weight of one ounce. So when we talk about the amount of gold it takes to bring home two grand, that's how much we're really talking about. And while I'm on the subject, let's double click on selling gold.

And when I say selling gold, I don't just mean solid gold bars, although if you have those, amazing. I'm talking about selling gold jewelry, gold picture frames, names furniture with gold pieces, gold vases. Anything that has a gold component could make you some money right now. The first thing I want you to do if you're considering selling something made of gold is to get it appraised. I know that sounds like something that could be pricey, but you can get a piece appraised for as little as 25 bucks through the American Society of Appraisers. There are a few factors that will determine the value of the piece, and they're all pretty intuitive. How much your piece is worth will depend on whether the piece is solid gold and how pure the gold is. We have all heard of 24 karat gold, Bruno Mars made sure of that. And the reason Bruno was thinking about 24 karat gold and not 18 karat gold is because 24 karat gold is 100 % pure gold. The general rule when we're talking about gold, the lower the karat of gold, the less pure it is. So take 18 karat gold, for example.

18 karat gold is actually 15 % silver, 10 % copper, and only 75 % gold, which is still a lot of gold. But if If you're taking your piece to a gold refinery where you know they're just going to melt your piece down into its composite parts, they're really only going to be interested in the purest stuff. But a refinery isn't the only place that will buy your gold right now. Consignment stores, jewelry stores, good old pond shops will also pay big bucks for gold right now. However, just because the price of gold is high doesn't mean you're going to make a lot of money necessarily from this trend. There are also fees, commissions, and taxes to consider. For example, remember our old friend capital gains tax. That's the tax that gets applied when you sell a stock or a house for profit. Well, the same thing applies when you sell valuables, too. But if you remember from our last conversation on cap gains taxes, you get taxed significantly less if you hold on your stock or your house for longer than a year. It's the same thing with valuables. So if you bought a piece of gold jewelry within the last year and the value has appreciated a lot, you're going to probably want to hold on to that thing a little while longer to keep more profit in your pocket when you sell it.

If your piece hasn't appreciated much, then factoring in capital gains matters, honestly, less. So your first step is understanding how much your piece has appreciated. And again, who are you going to call for that? An appraiser. If you've been listening to this and you're thinking, All of this is super cool lap in, but I didn't grow up with a silver spoon in my mouth, and I certainly didn't grow up with a gold one either. I don't have gold to sell. Who the heck do you think I am? Cool, cool. I get it. And don't worry, I don't have some secret vault of all this gold in some Bat Cave either. Like most things, my strategy to profit from price fluctuations in gold is through investing. So let's talk about the investing part now. There are two main ways you can invest in gold. First, you can invest in a company that mines gold. Second, you can invest in an ETF that tracks the price of gold or metals as a whole. Can you guess which method I prefer? Yep, ETFs and chill, baby. The most popular gold ETFs out there have ticker symbols like GLD, BGLD, DBp, IAUM.

Bgld actually had the best annual return for a gold ETF that I saw last year at over 8% ROI. And you might remember from a past episode, one of the greatest investors of all time, Ray Dalio, recommends allocating 7.5% of your portfolio to gold. So there are some really big names cosigning gold as an investment. Now, here is the critical difference between physical gold and investing in gold right now. If you have physical gold, it's an awesome time to sell. The price of gold is high, you know you're probably going to get a good deal. It's not very clear-cut if you're looking to invest, because as I teased at the very beginning of this episode, we want to buy low and sell high. If you were to invest in gold right now, you'd be buying pretty high, which makes it hard to make a profit. But here's the thing that makes it tricky. We don't know if this is the peak for gold right now. Gold could go higher. Ubs, in fact, thinks that gold will hit $2,200 per ounce this year. That is the problem with buying low and selling high. We don't know where the high is.

We don't know where the low is either. No one does, not even Ray Dalio or any other MVP investor. So the best thing we can do is set price alerts on Robin hood or whatever brokerage you use to get notified when the price goes down, and therefore, maybe a better time to buy, or to dollar cost average, which is where you spread out your investments over a range of times so you increase your likelihood that you buy on a low. And And that is how to play the market like a pro. For today's tip, you can take straight to the bank. If a piece of gold jewelry has been in your family for generations and has appreciated a ton, let's say, you might be really stressed that you're about to get hit with a major tax bill if you sell it. But don't worry, there's actually a tax rule in your favor. It's called the step up in basis, which allows you to only count the appreciation that's happened to you since you've personally owned the piece. So if this was your great grandma's necklace from the old country, but you've only had it since since 2020, you'd be taxed on the value it increased only since 2020.

Finally, a tax rule that works in our favor. As a small business owner myself, or as I like to call it, a pre-big business owner, I know how critical hiring is to the success of a company. When you have a pre-big business, hiring isn't just adding a new employee, it's adding a new family member. The problem I run into is that I don't have the time or the resources to give hiring the TLC it deserves. That's why I love LinkedIn jobs. Linkedin isn't just another jobsport. Linkedin is a vast network of more than a billion professionals, which makes it the best place to hire. It gives you access to professionals that you can't find anywhere else. Linkedin does all of that while making the process easy and intuitive. Hiring is easy when you have that many quality candidates. So easy, in fact, that 86 % of small businesses get a qualified candidate within 24 hours. And it really works. 2.5 million small businesses use LinkedIn for hiring. You can post your job for free at linkedin. Com/mnen. That's linkedin. Com/mnen, as in Money News Network, to post your job for free. Terms and conditions apply.

Did you know that even if you have a 401(k) for retirement, you could still have an IRA? Robinhood has the only IRA that gives you a 3% boost on every dollar you contribute when you subscribe to Robinhood Gold. But get this, now through April 30th, Robinhood is even boosting every single dollar you transfer in from other retirement accounts with a 3% match. That's right, no cap on the 3% match. Robinhood Gold gets you the most for your retirement thanks to their IRA with a 3% match. The offer is good through April 30th. Get started at Robinhood. Com/boost. Subscription fees apply. And now for some legal info, Claim as of Q1 2024, validated by Radius Global Market research. Investing involves risk, including loss. Limitations apply to IRAs and 401(k). 3% match requires Robinhood Gold for one year from the date of the first 3% match, must keep Robinhood IRA for five years. The 3% matching on transfers is subject to specific terms and conditions. Robinhood IRA available to US customers in good standing. Robinhood Financial, LLC. Member Sippik, a Registered Broker Dealer. Money Rehab is a production of Money News Network. I'm your host, Nicole Lappin.

Money Rehab's executive producer is Morgan Lavoy. Our researcher is Emily Holmes. Do you need some money rehab? And Well, let's be honest, we all do. So email us your moneyquestions, moneyrehab@moneynewsnetwork. Com, to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok at Moneynews Network for exclusive video content. And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.