Most investors have a difficult time at deciding what to bet on for obtaining a maximum return on their investments. Predicting the evolution of your various assets is always a challenge. The collapse of the real estate market is one of the events that ruined a lot of lives. On the other hand, precious metals appear to be one of the safest investments. Looking back into the price of gold over the past two or three decades, we can notice an ascending trend. This makes it a good long-term investment.
Bitcoin is another novelty that has attracted many people to invest part of their savings in this virtual currency. Although stable for a very long time, Bitcoin has known a tremendous growth over the past few months. There’s no wonder so many people consider investing their money in the cryptocurrency of the future. As many merchants are already accepting it as a payment form, Bitcoin has a brilliant future.
Before deciding whether to go for precious metals and bitcoin or to invest in real estate and in other traditional assets, you need to perform a thorough analysis of the market. By assessing the opportunities and the risks of all these investment opportunities, you’ll be able to make the right decision. Nonetheless, you need to be aware that nobody can actually predict the evolution of various assets. Sometimes, a tornado or another natural disaster can be enough to shatter the entire market, wreaking havoc on investors and average people alike.
If you want some reliable long-term investments, you should take a look at the evolution of various assets over a ten-year or 20-year period. You may notice lots of small fluctuations on short-term, but when you look at the overall chart, you should see the profit. This is the case of gold and of other precious metals. Although this information is public, you may have to spend quite a lot of time to find it.
If you wish to invest a part of your savings into assets that would bring you profit on a shorter term, you may not be too happy with purchasing gold or bitcoin. You can still score a nice profit very quickly, but only if you are extremely lucky. On the other hand, the risk of losing everything you’ve invested is huge, so you should think twice before choosing this route. When you need quick profits, the last thing you want is to invest in something that fluctuates a lot from month to month. You can win, but this is rather a risky game, so you should refrain from playing it. As a matter of fact, quick profits are only a beautiful dream. Most investors that choose it end up in misery and failure. If you don’t want to be one of them, you should plan your investments on long-term, and perhaps seek professional advice.
The other problem of many investors is that they panic too easily. Whether you choose Bitcoin and precious metals or you seek for profit in real estate, you shouldn’t sell at the first sign that things don’t look too good. It can happen that some assets decrease in value quite a lot, only to gain good traction in a few months or years. If you rush into selling everything, you’ll lose money, because you may not be able to find someone willing to pay you the amount you want. This panic isn’t good, so you should hold your horses, and wait for the situation to improve. If you take a look into the history of the market value of gold, you can see that people who were patient enough to overcome difficult periods are today’s winners. The same applies to Bitcoin, silver, and platinum. On the other hand, the real estate market doesn’t have such a brilliant history. The last crisis has left many investors broken and many families without a decent roof over their head.
The best advice one could possibly give you is to avoid putting all your eggs in the same basket. Always consider spreading the risk by diversifying your portfolio. A certain amount of real estate properties is always nice to have, but you shouldn’t ignore gold, Bitcoin, and stock trading. By investing in various categories of assets, you have more chances to score a profit. This is something all experts in investments would give you. Even though your profits may not be as big as the profit of those who have risked everything by buying a single type of asset, you’ll definitely be on the safe side. Whatever will happen to any of your investments, you won’t lose everything you have. This is the rule of smart investors. The sooner you learn and apply it, the better you’re going to be in your financial life.