4 Alternative Investments to Protect Yourself from the Next Financial Crisis

The stock market, much like the currency market, is an unreliable beast that often deals poor cards even to some of the finest experts in the field. No matter if you have years of accumulated experience in stock and currency trading, or if you’re only getting acquainted with the practice, every investor needs alternative options to back up those fickle investments and ensure a financially stable future. Investing in general always comes with a certain degree of risk, but knowing your options, weighing them correctly and choosing the best one for your particular situation can all help you carve the right portfolio for yourself.

Diversification is the key term to focus on in this situation. A diverse portfolio is a much more stable one than an investment plan that solely focuses all of your proverbial eggs into a single, volatile basket. Let’s take a closer look at the most profitable and secure options that are currently in high demand, and that you can add to your own portfolio to mitigate risk and ensure your money goes into the right assets for your future.

The real estate market

If you have a significant chunk of money that needs a resting place, you can never go wrong with owning a piece of land or property that has a specific use. Whether you’d like to invest in an entire building, a single apartment, or a range of homes in a suburb, owning real estate or real property is an excellent investment for the current economy. After all, more businesses are sprouting around every corner, the number of people in the world is rapidly growing, and we all need a place to work and a place to dwell.

It’s a long-term investment, one that shouldn’t be made only with current trends in mind. Although a piece of land will always be useful, you need to make sure that you chose a prime location that will never go out of “style”, a property that will remain in high demand no matter the era, and a multi-functional space that allows changes as times move forward. You may want an expert on your team to conduct any research and ensure that your ROI for real estate makes sense for you and your budget.

Precious metals

When something exists in limited quantities, it instantly becomes a desirable item to own. That same logic applies to precious metals such as gold, that have stolen the spotlight for investors for years now, and for a number of great reasons. These are often not too easy to come by, only the best in business know how to properly store and trade in gold and other precious metals, and even though their “price” is connected to currencies, they have timeless value in terms of diversification.

However, while gold is the most typically considered precious metal for investment, you should also consider other options such as platinum, as this precious metal is even rarer than its golden counterpart. While its prices may be more volatile, you can start in smaller quantities, and keep it in the form of bars, just make sure you prepare proper storage options to keep your investment safe.

Cryptocurrencies

Welcome to the new era, where digital goods have earned a high-enough value to be considered a legitimate addition to an investment portfolio. Now, you’re most likely thinking: bitcoin. The process is very akin to thinking of gold when learning about precious metals. However, just like there are alternatives in the world of precious metals, you will also discover that cryptocurrencies don’t end with bitcoin – it’s merely the beginning. Make sure you learn from a range of credible sources, ask for expert opinions, and get the latest data on crypto trends before you take this digital leap.

Other digital options include Ripple (XRP), Ethereum (ETH), and Stellar (XLM) among many others, due to their ability to improve over time and implementation diversity across a range of sectors, including healthcare. If you are considering cryptocurrencies as one of your alternatives, make sure you have at least a basic knowledge of the technology that is at the very core of this currency, also known as Blockchain.

Artwork and other collectibles

Going back to tangible items with values that grow over time, collecting antiques and other rarities has become quite a rage even for younger investors, still new on the block. Although not too many people can invest in a Renoir or Monet, the sheer volume of artistic heritage allows us to cherry-pick our own artistic niche to turn it into an investment that will only grow in value over time. The same applies to vintage vehicles and other rare examples of goods that have stopped being produced a while ago, at least in their original state.

Much like with gold and other physical assets, it boils down to insurance and proper storage to keep your investments secure over time. Even if you never need to dip into this segment of your investment portfolio and turn it into pure cash, you can rest assured your children will have something to use if it comes to that.

 

Diversification is necessary in any economy, let alone today. With too many variables at play, there is always another financial crisis to beware of, and even if it never happens in our lifetime, long-term investments allow you to help the future generations inherit a safer, lucrative future. All it takes is another wise investment!