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Finance

4 Ways to Invest in Uncertain Times

You might say that to invest in uncertain times requires a certain amount of prudence or caution. That is, of course, true. Equally, there are financial gains to be made by investing when the markets are not so good to later reap the rewards. It all depends on whether you can wait to recoup your money. These are the individuals and companies who are making the most money in finance. Very often it can be a waiting game involving longer-term investments. Having said that, share prices are changing by the second. For comparison, we should consider four different ways that exist to invest our money in.

Savings and Investments

We should think of the pros and cons when deciding whether to save or invest. Investments have potentially higher returns but can also decrease in value. This is due to the volatility of the share market that policies are invested in. However, because of the higher returns achieved from investments, it can mean that we do not have to contribute so much to reach the final sum that we desire from our savings.

Shares

Putting your hard-earned cash into shares has several advantages attached to it. Investing in equity shares means that you have a dividend entitlement. There are capital gains to be had. You have limited liability. There may be bonus shares or rights shares that you can also take advantage of. You will have control over which companies you invest in, unlike an investment plan where it is decided for you by the fund manager.

A fund manager that will be anonymous to you, and whose credentials you will be unlikely to find out. The disadvantage of shares is that the dividend can be uncertain and affected by the local economy and the state of world affairs. Share markets are volatile and open to fluctuation. On balance, it is about choosing your companies wisely and being prepared to wait for a share price to rise again.

Doing continuous research could help you on this front. Looking at helpful online resources that talk about emerging market trends and possible future share prices can guide you towards knowing which shares to invest in. All over the world, amateur investors look for answers to questions like ‘wie viel eine Apple Aktie kostet‘ (how much an Apple share costs) since it is one of the biggest companies in the world right now. You might want to understand whether the big names like Apple or Microsoft are companies you want to invest in, or you want to look at other options that have the potential to provide significant returns in the future.

Property

Property, or real estate, is still one of the best forms of investment, and with different investment methods to consider like real estate crowdfunding, where you can passively invest in real estate with other investors and without the hassle of becoming a landlord and managing the property, it is still a promising route to go down if you wish to do so. It also has the added advantage of providing you with a property to live in. Or one that you can rent out for a guaranteed regular income. In terms of owning a property, it does seem like money wasted to continue to pay rent when you can afford a mortgage. That is, able to afford a deposit. This will mean having at your disposal at least 5 percent of the property price to put down as a deposit.

Although, on average, the deposit insisted on by mortgage lenders will be more like 15 percent. The advantage of a larger deposit, if you can afford it, is that your mortgage interest rate will then be lower, which will result in smaller monthly repayments. If you are a doctor, you can obtain a special mortgage where no deposit is required. Just what the doctor ordered.

Precious metals

By precious metals, we usually mean gold, silver, or platinum. Increasingly investors are turning to gold. Sovereigns minted in 22ct gold are now purchased as bullion rather than being used as currency. If they were, their nominal value would be just 1.00. Instead, they are worth their weight in gold, which is considered almost as good an investment as real estate. In terms of gold’s rarity factor, gold mines are, of course, still being discovered but large deposits of the precious metal are becoming increasingly rare, according to experts. So, it is true to say that most gold that is being mined will be from old mines that have existed for years. The supplies of gold in these mines can only get less, so gold would seem the investment for the future. It has been suggested that 56 percent of silver will be used for industrial purposes, so its market is more volatile than that of gold.

For this reason, silver will hold its value during market lows but increase in value when markets are good. Platinum, although it does not have the known history of investing that gold holds, has a much lower supply and is more difficult to exact, so the indications are that it has sound future investment potential. In addition, platinum as a material is highly malleable, so has many uses in that respect. In terms of the quantity required to make an item of jewelry completely out of platinum, if desired, platinum can be used in larger quantities because it can be used in a purer form than gold. Normally at around 95 percent.

So, the potential demand is there for something to be used in greater quantities despite it being scarcer than gold. The upside of investing in precious jewelry is that you can also wear it for special occasions. The disadvantage of investing in precious metals is the security of keeping them. You might find that you need to spend additional money on safety deposit boxes or insurance, for peace of mind and to keep your valuable investment pieces safe.

Whichever forms of investments you decide on, perhaps all four of them, there will be pros and cons to them. Hopefully, the above article will have alerted you to some of them. Also, it should be noted that investments can appreciate just as much as they can be appreciated.