We all need to be prepared for times when we need money and we have no way to earn them, but more importantly, we all need to be responsible with our income and invest it in funds that will make us even wealthier.
People that spend their money on things that are spendable like cars, expensive trips, and similar, are making a huge mistake because they are only wasting their money. What they should be doing is investing in other assets that will only grow their wealth over the years.
What is the best type of investment out there?
There are lots of options. You can invest in stocks, bonds, precious metals, art, cryptocurrencies, annuities, education funds, retirement funds, Real Estate, ETFs, and others. Every single one of these has its pros and cons, and you need to be highly skilled and experienced to know what fits you best. See some more of them here.
Since none of us can be that experienced unless is an expert in finances, it’s wise to hire an advisor or learn more about the subject. In general, there are two types of investment, and every one of these falls into one of these two broad categories.
The first type is an investment that might be risky, but you can make a huge return. Stocks and cryptocurrencies are the perfect examples of these types of investments. You may buy stocks on the market for $10,000, and in a matter of minutes you may lose everything, but at the same time, you may win ten times more than you invested.
The second type is the stable type, which pays off later. These types of investments will not give you a huge ROI, but will keep your assets safe from inflation and will provide a safe future. Some of these great examples are buying real estate, bonds, investing in education or retirement funds, and buying ETFs or physical gold.
Some people prefer buying a piece of paper like ETFs, and bonds, while others prefer a physical product, like real estate and gold items. Gold ETFs are called GLD, while physical gold has the same name. They both deal with the same product, but in a different way. If you want to learn about GLD and other gold ETFs, you can check the link we highlighted.
Why investing in gold is smart?
Unlike other types of investment, gold is known as the most stable type of investment of all. If you look at the charts throughout the years, and even throughout the centuries, you’ll see how its price never goes down.
Sure, fluctuations are normal, but in the end, the price of gold will still go up. What is more important about it is that inflation does not affect it. While fiat currencies tend to be eaten by inflation, gold will always remain with the same value no matter the circumstances.
The reason for it is that it has a constant demand by people no matter what’s happening in the world. At the same time, there’s only so much of it, and it soon faces depletion in the mines around the world, which makes it even more valuable.
As time passes, its price will only go higher. Once the mines are fully depleted, the price will skyrocket making those owning gold extremely wealthy. If you have the option, it’s smart to make this kind of investment right away.
It’s not smart to make investments in stocks that may disappear overnight. However, investing in ETFs, especially those in GLD, is still a smart choice, as the price of precious metals is not going to be destroyed in a split second. Everything connected with gold is basically a smart investment. See what ETFs are on the link: https://www.investopedia.com/terms/e/etf.asp.
These are some of the most valuable things you need to know when we’re talking about investing your hard-earned money. Don’t waste your money on things you can’t flip and make a bigger fortune, but spend them on things that can make you even wealthier.
As we mentioned, there are lots of options. Investing in gold and GLD shares is probably one of the smartest investments you can make.