Investing Music Royalties In Gold
It’s no secret that the music industry is in a state of flux. CD sales have plummeted in recent years, and with the rise of streaming services like Spotify, it’s becoming increasingly difficult for musicians to make a living from their music. As a result, many artists are looking for new ways to invest their money and secure their financial future.
One such way is by investing in gold. Some musicians have recently turned their music royalties to gold investments since it’s a great contingency cushion in times of crisis (such as when you fail to attract a strong fanbase). Brokers like Goldco can help direct your music royalties to gold investment so you can secure your wealth – this Goldco precious metals review can help get you started. Since gold prices fluctuate in the opposite direction as most markets, it can be a great way to diversify your portfolio or hedge against inflation risks, making it a smart investment option for your music career!
What Benefits Can You Get by Investing Your Royalties in Gold?
Here are some of the best benefits you get to enjoy by investing your royalties in gold:
Gold has held its value for centuries. By buying gold, you can ensure you have invested your royalties into a valuable asset you can rely on if your income from music sales decreases in the future.
Another benefit of gold is that it can be easily converted into cash if needed. This is important because it can give a cushion in case of an emergency.
Gold is a good factor to diversify your investments, since it can be used to maintain balance in your portfolio that’s largely affected by market movements. By investing in gold, you can hedge against risks, especially when your music career suddenly collapses – not that we’d want that to happen to you.
Safe & Secure
Finally, gold is a safe investment. Unlike stocks or bonds, gold is not as likely to lose value in times of economic instability. This makes it a good investment if you’re looking to protect your wealth against market volatility.
By investing your royalties in stable assets like gold, you’ll be sure to secure your financial future even amidst the unpredictable changes in the music industry!
Why Musicians Invest Royalties to Gold Investments
Beginning the establishment of streaming services like Spotify, CDs have become an out-of-date product in the music industry. The major drawback is that streaming services aren’t a good source of stable income for small artists.
To help you have a better idea, you can earn an average of $7.00 per CD, while you’ll only get $.0033 to $.0054 per stream if you opt to release your music on streaming services. So, you’ll need to have a constant flow of creativity and ear-catching content if you want to stay relevant in the industry. Additionally, with millions of artists competing for popularity, you can’t really secure your spot if you don’t have a stable fanbase, much less earn the minimum wage in the U.S.
Since there’s no guarantee in the music industry, some musicians find it a good idea to invest their royalties in stable assets like gold. Doing so does not only keep their hard-earned money secure but also has their investment grow fast since gold prices soar in no time. With this, they can ensure that they will be able to maintain their wealth even if their income from music sales decreases in the future.
Is Gold a Good Investment Option for Your Royalties?
Gold has its benefits and can be a great way to grow your money in the long run. You won’t have to worry about market unpredictability and inflation since gold has a proven record of stability for centuries. And if you ever need to get financing for your next music production, having a bar of gold can help you get an easy loan!
That said, it pays to be aware of its limitations. For instance, holding physical gold doesn’t work like stocks or mutual funds since they do not generate passive income. So if you’re expecting to receive regular returns in addition to your music sales, you won’t get any! The only way you can earn money from physical gold is by selling them. Moreover, gold carries disadvantages like theft, storage fees, and other transaction charges. But if you still want to invest your music royalties in gold; mutual funds, gold ETFs, and digital gold are some alternatives that carry none of these inconveniences.
Ultimately, the answer to this question simply lies in whether gold is something that adds value to securing your wealth or an investment you want to bet your royalties on for profits over the long run.
It’s always a smart move to diversify investments and make sure there is enough money saved up in case of an emergency. Artists like you are no exception! By investing in gold, you can ensure that your wealth is not only tied to the recurring royalties you receive regularly but stored in a secure asset.
Whether you believe it or not, living your passion for music will not always guarantee your financial security, that’s why finding a stable investment like gold can be a wise decision!