We are constantly bombarded with investment opportunities, from our work 401K to our savings that is not gaining much interest. Investing is easy, but getting the proper return for the risk is more challenging. Investing takes research and analysis of our available options, and many times we ignore the analysis and invest blindly. Gut feelings and word of mouth do not go very far when we are looking for proper investments. Before we select where we want to invest our financial resources, we need to ask two important questions. How long am I willing to lock up my financial resources and how much return do I want? With these two questions, we can narrow our search for investment options. In this article will examine investing in precious metals, rare coins, and foreign currencies.
Gold and silver have been around for ages, and people have invested in the two to keep their money safe. We live in a day where the global economy impacts us no matter where we live. If China has a downturn in their economy, then we feel the effects in the United States. For an example, with China’s economy slowing down, less imports are brought into the country, such as raw materials from the United States or electronics from South Korea. Even car manufactures get impacted when consumers spend less and save more money due to uncertainties in the economy.
Whenever there is uncertainty, most investors seek safe options. Gold and silver has been the safe investment option whenever there is global uncertainty. Recalling the war and turmoil in Iraq, many investors sought to keep their financial resources safe by investing in gold. During this period, gold hit its all-time highs. Gold and silver are great examples of investment options when there is a lot of global uncertainty, but the return on your investment will be measured in months rather than weeks.
Many people consider rare coins as a hobby, but in reality it is also a good investment option. It has been proven in history that rare coins appreciate in value, especially when collectors seeks special coins at auctions. Rare coins are a safe investment option if you are willing to keep your investment for years. However, if you do come across that lucky coin at a yard sale, then your investment could skyrocket instantly. Granted this is more luck and skill, but it is a valid example of spending time and energy to grow your financial resources.
Investors also seek to spread their risk through investing in multiple currencies. By investing in not only one currency, investors can hedge their risk by holding strong currencies and some volatile currencies. Safe investment options here can be considered as stable countries with little change to their currencies. Strong currencies typically remain the same or at least retain the majority of their value, but returns on the investment are much lower. Whereas, volatile currencies can see gains or losses of one to five percent in a single day. Investors here can expect returns on their investment in hours to days.
Regardless of the investment option selected, make sure to do the proper research and analysis before investing. This will allow for the growth of your money, while keeping it safe.