With the long-term value of the dollar and other fiat currencies constantly being questioned by pundits and financial analysts, the average investor certainly has a legitimate reason to be concerned about how they’re storing their wealth. After all, nobody wants to spend their entire life amassing a savings in fiat currency, only to have those funds severely depreciate, especially when such a fate could easily be avoided through strategic decision-making. To help our readers protect themselves from currency devaluation, inflation, and other economic/geopolitical factors, we sat down with Dmitriy Aksyonov of Global InterGold to discuss options for mitigating risk in tomorrow’s unpredictable financial environment.
1. Invest in Precious Metals
Perhaps the safest way to ensure the value of your wealth doesn’t decrease significantly is to store some of it in the form of precious metals like gold and silver, which have a long track record of holding their worth. “Gold has a particularly positive outlook for the next decade and beyond, with analysts expecting the value to skyrocket as demand continues to rise and finite mining supplies proceed to dwindle. As far as long-term investments go, there are few options that are more appealing than precious metals right now,” stated the President of Global InterGold.
2. Contribute to an S&P 500 Index Fund
Apart from precious metals, investing in an S&P 500 index managed fund is the second-most reliable way to make your money hold value and grow. These funds perform fairly consistently, providing a profitable investment vehicle that is highly unlikely to result in losses in the long-term. “Every investor and financially conscious person should strive to have a diverse portfolio of stocks to go along with their precious metal holdings, and investing in an S&P 500 is a quick and easy way to do that,” Dmitriy noted.
3. Diversifying and Transferring Wealth to Stable Investments
If the economic uncertainty that you’re concerned about is largely related to the outlook for your home country’s currency, it may be wise to transfer some of your funds to other currencies to hedge your bets. Likewise, you might want to consider investing in real estate and businesses in countries that have strong currency outlooks. “An investor who has their money stored across various currencies and countries is less likely to lose a significant portion of their wealth due to negative economic or political events,” Mr. Aksyonov stated.
Hedging Against the Economy
Ultimately, all of the steps above are geared towards hedging against the possibility of financial disaster. While transferring funds into other currencies and investing in stocks are great investment decisions, they aren’t failproof solutions in the event of a serious global financial crisis or crash. On the other hand, precious metals have been highly valuable forms of currency for thousands of years, and because of their use in modern industrial applications in the manufacturing and technology sectors, it is likely they’ll continue to become more valuable as time passes. Thus, it’s only fitting to place precious metals at the top of a list of options for protecting wealth from economic uncertainty.