Investing in commodities is a good way of generating more money by increasing the value of your assets and earning interest. But, the world of investment is a bit frightening as fluctuations in the value of investment commodities due to inflation or other external factors can give you a big financial shock. The best way to avoid it and protect your wealth from the effects of market fluctuations is to choose alternative investments.
If you’re an investor who is looking for profitable investments that are immune to inflation, then invest in these 4 alternatives to preserve your wealth.
Gold is the favourite of investors who are in search of a profitable investment commodity. The reason is that gold is easy to purchase. It can be bought in small to large amounts and it maintains considerable value even during periods of inflation. Therefore, people with less money can buy gold coins or gold jewellery whereas wealthy people can buy gold bars and preserve their wealth. That said, the price of this precious metal has appreciated over 500% since 2000, thus making it a safer choice for investors as they’re assured of earning a good profit in the future. But, make sure that you buy gold from a certified gold dealer to avoid making costly mistakes.
The popularity of rare coins has increased recently, thus making them a good investment option. Investing in numismatic coins can provide a hedge against inflation, currency devaluation, and economic collapse because these coins are always in demand. Rare coins are exclusive, scarce and have historical significance that’s why their availability becomes more important than their price. Even if the paper currency becomes weak, rare coins will be easily sold in the collector’s market.
Stamps might look like a not-so-traditional investment commodity, let alone profitable one. But, the value of these small investment instruments increases at the time of inflation. They are not correlated to other asset classes, thus making them immune to the factors that determine the value of other assets such as real estate property and equities. Stamps are relatively secure assets and prove to be a great way of preserving capital over a period of years that offer good returns.
Usable Precious Metals
Gold is not the only precious metal that holds value in the investment market. Other precious metals such as platinum, palladium and titanium are also popular investment products because of their demand in different fields. These precious metals are used for making jewellery and intricate parts of electronic devices, thus making them an investment commodity that can be used in a practical capacity. If you plan to buy these usable precious metals, then be sure that they will be in high demand by businesses and governments even at the time of economic instability, thus preserving your capital in hard times.
Investing your money is a big decision. Ditch the traditional investments and switch to these profitable alternatives that ensure a good return in the future. Rare coins, stamps, gold and other usable precious metals are excellent options to invest your capital and keep your money unaffected from the fluctuations in the value of other assets.