In times of economic uncertainty and stock market upheaval, people look for safer investment options. It is best to prepare ahead of time; tried-and-true asset prices usually increase with demand, such as the price of an ounce of gold. And while there are many good investments to choose from, consumers need to beware. A lot of hucksters promise the world while merely separating you from your money. However, there are still some good strategies for the careful investor during a depression.
Short -Term Investments
Cash is still your best asset, especially in the event of a job loss. Having three to six months of living expenses set aside can ease stress and worry if something unfortunate happens. And if something drastic were to happen to the national economy, it is wise to have some funds set aside.
Treasury bonds can also be a good short-term investment, for periods of three, six and 12 months. Try not to tie your funds up for longer periods. However, interest rates fluctuate, and you will want to research the bonds closely before purchasing to make sure this is a good use of your money.
Long-Term Investments
Gold is considered a solid investment by many investors. It can be purchased in bars or coins of various weights. However, this is an investment that requires a great deal of research, and an asset that may require special storage, causing an expense. Diamonds, jewels, and gold jewelry can be an investment if it is of a good quality, is older (such as an heirloom) and is cared for properly. Investors also will need to ensure proper security to avoid theft, which could be yet another expense.
Real Estate
Owning your own home or managing rental properties is considered sound during a depression or recession. People--including your family--always need a place to live. When banks are hesitant to lend for a mortgage, the pool of good renters will be higher; tenants are essentially making a house payment for you. Once the rental mortgage is paid off, the rent becomes full profit, less any maintenance that is needed. Although it can be harder to sell real estate during financial challenges, it is still an asset that can be moved if the price is right.