Whether you’re saving for retirement or just to gain peace of mind, certain investments are better than others. In fact, investing in the wrong assets can actually be detrimental to your portfolio and everything you’ve worked for. With that being said, it’s important that you take an informed approach when making financial decisions in the coming months and years. Let’s take a look at five of the smartest investments you can pursue.
1. Gold and silver
When you look back at history and think about the ebbs and flows of global economies, what’s the one thing that’s never failed? The correct answer would be gold. In the more than 5,000 years it’s been used by humans, the value of gold has steadily increased.
And according to reliable financial institutions, there is currently only enough gold for every person on earth to have one-third of an ounce. However, people are being born much faster than gold is being mined or discovered.
That ultimately means that gold will become increasingly scarce and values will continue to grow in the future. It’s the safest investment in the world and always will be.
While gold is arguably the best investment opportunity, silver is still a safe choice and very lucrative. It’s also true that there’s currently less silver available on the earth than there is gold. That, combined with its relatively low price point, makes silver a no-brainer for investment and future financial security.
2. Fine jewelry
Finally, it’s worth considering fine jewelry. This is a very nuanced investment sector and – much like gemstones – requires you to know what you’re looking for. In addition to the weight of gold, silver and diamonds, you also have to know about things like cut, clarity, quality and age.
However, if you do your due diligence prior to buying, you can often earn a hefty return in the end.
According to Noam Flint of Naturally Colored, a colored diamond manufacturer, “Fine jewelry rarely depreciates and makes a solid financial investment for savvy investors interested in holding on to something for many years or decades.”
3. Real estate
While the recent housing crash may have scared away novice investors, experienced financial experts know that real estate will always increase in value over any 10 year period. Think about it – there’s a limited amount of real estate and a rapidly increasing population.
Simply looking at the principle of supply and demand will show you what direction the market will head in over any extended period of time. From tax benefits to steady monthly cash flow, the benefits of real estate investing are numerous.
4. Home improvements
If you’re like most people, your home is your biggest financial asset, and it’s time you start treating it as such. While the actual real estate your house is sitting on will appreciate over time, the physical structure will naturally depreciate if you don’t take care of it.
Certain home improvements, while they require upfront capital, bring a high ROI when you choose to put your home on the market. Some of the most cost-effective home improvements projects include replacing the front door (113%), adding a deck (87%) and performing a minor kitchen remodel (82.7%).
Investing in gemstones requires a certain level of expertise, but it can be an enjoyable and worthwhile investment opportunity. Over the years, gems like rubies, blue sapphires, emeralds, spinel and topaz have increased in value and in turn rewarded savvy investors.
While you don’t want to solely focus on gemstones, it can be a nice way to differentiate your portfolio when used in conjunction with some of these other investment options.
What do you think? Do any of these five investment opportunities sound like they could fit in your portfolio? While it’s impossible to predict exact returns, history shows us that these are some of the safest and most secure investments you can make. Happy investing!