Three Investments That Can Protect Your Wealth In An Economic Depression

Economic depressions and recessions can wreak havoc on your wealth. When the economy takes an unexpected downturn, the value of your investments in the stock market can plummet over night. Likewise, runaway inflation can significantly devalue the cash you have sitting in your savings and checking accounts. Luckily, there are some alternative ways to invest your wealth that will hold up much better in the case of an economic crisis.

Stop Hoarding Cash and Buy Gold

Cash currency is intricately tied to the economy of whatever country issues it. For example, the infamous Brexit vote of 2016 caused extreme volatility in the British economy. Citizens were suddenly faced with high inflation that made the cost of some everyday goods skyrocket. At the same time, the value of the pound began to fall. Consumers suddenly found that their cash had significantly less purchasing power.

One way to protect yourself against inflation and currency devaluation is to trade in your cash for gold. Gold is almost universally valuable in all cultures and economies across the world. If your local or national economy suddenly takes a downturn, your gold investments will be much more prone to devaluation than your cash savings. Check out a pawn shop like Desert Jewelry Mart & Coins to start investing in gold.

Buy Property: Unlike Products, They Aren't Making It Anymore

When you invest in the stock market, you're essentially loaning your money to companies with the hope that they will become more valuable over time. However, if the value of the companies you invest in fails to outpace inflation, the purchasing power of your wealth will begin decrease. Even worse, if the companies you invest in take a financial downturn, they can completely wipe out the value of your investments.

One way to avoid the fickle trends of the stock market is to invest your money in property instead. Companies produce new products every day, some of which will inevitably be failures that devalue the companies' stock prices. However, no one will ever be able to produce more land — the Earth is a finite space. Investing some of your money in land and properties will help protect your wealth in case your stock portfolio takes a nosedive. 

As an added bonus, property investments can be a great source of passive income to increase your wealth over time. For example, if you invest in residential properties, you can rent the homes out to tenants as a secondary source of income. If you invest in agricultural property, you can rent the land out to farmers who will pay you to use your land for growing their crops.

Build a Collection of Tools

No matter what state the economy is in, tools will always be valuable. An extensive collection of tools will give you the ability to repair things such as cars and homes, build things such as furniture, and even be self-sustaining if you need to collect your own firewood or hunt your own food. In other words, even if the entire economy collapsed, tools would still be extremely valuable as a means to survival. 

In addition to their monetary value, tools can help save you a ton of money in the case of an economic crisis. If the economy takes a sudden downturn, your money will be worth much less, and you may even have a hard time finding work. Having an extensive collection of tools on hand will allow you to work on your own car, maintain your house, and engage in other trades that otherwise would require a specialist who charges a high fee for their labor.

Since the subprime mortgage crisis of 2008, many consumers have been justifiably wary of the American economy. Now is a better time than ever to diversify your wealth and look into alternative investment opportunities that can withstand the next economic recession.

About Me

Shopping for Fall Jewelry

Fall is an unbelievably beautiful time of the year. Whenever the weather turns cooler outdoors, I love to attend bonfires, buy pumpkins, and update my jewelry collection. Because I wear a lot of black, brown, and gray-colored clothing during the fall months, I like to accessorize it with colorful gemstone jewelry. Some of my favorite gemstones to wear when the weather cools off are ruby, blue sapphire, turquoise, blue topaz, amethyst, and diamonds. I also like to wear pieces of jewelry set in luxurious yellow gold. On this blog, I hope you will discover tips to help you update your jewelry collection for fall. Enjoy!

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