Hide it under the bed! While that will ensure you won’t physically lose any money during times of uncertainty, it won’t actually help it to grow or be making the most of your finances. Investing in stocks and shares may be one of the most popular options for protecting and growing your wealth normally, but in financially uncertain times there are better options.
Whether you’re a regular on the financial markets or a beginner looking for a solid investment during national or international times of economic struggle, here are some of the best things to do with your money.
Buy Precious Metals
Gold and silver are some of the most popular investment choices for two reasons. Firstly, while their value does fluctuate over time, they will always recover even if it takes a few years to reach the point of your initial investment. They may even continue to increase in value over time as they get more scare and rarer.
Secondly, they are incredibly popular when other investments are decreasing (or predicted to decrease) in value. Precious metals including gold, silver and platinum tend to move in the opposite direction of the market. Plus, if they don’t increase and remain a similar price, you only lose out a little on inflation.
There are a number of safe haven currencies which forex traders flock to during times of economic uncertainty. The Japanese yen and Swiss franc are two of the most common choices, but with the changing markets these may differ in the future.
Safe forex options can be identified by:
- Strong economic growth for the country or economic area
- Stable political system
- High liquidity to make access to the currency easy
- Low debt to GDP ratio
When you have identified a safe currency haven it can be worth investing a lot more in this in preparation for and during uncertain financial times.
Invest in Property
There is an element of risk involved when investing in any type of property, should there be a price crash. Much like precious metals though, as a physical commodity there is always a good chance it will eventually regain and increase in worth.
Commercial, residential and other types of property are all available. You will need to thoroughly research the area for investing in property and the current climate, as depending on the circumstances it may be better to buy or sell.
Make the Most of ISAs
If you are in the best position of being able to predict times of upcoming financial uncertainty, then putting some of your money in a fixed rate ISA is a great idea. There is still a little risk, if the markets recover quicker than expected, but if they stay low you will at least be earning more off a fixed rate ISA than a flexible one.
Many different types exist too, such as junior ISAs and Help to Buy versions, so pick the one that meets your needs best. Any of these ideas should help you avoid losing out during times of financial uncertainty.
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