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How to safely invest?

What do you invest in safely and efficiently?

What do you invest in safely and efficiently? If you want to multiply your assets or protect them from depreciation in times of turbulence on the financial markets, you will know something for yourself.

My readers are asking me more and more often what they are to invest in. What if I'm not a millionaire and I have to say 300 USD, which I put off every month. How can I use the capital I have more efficiently? I decided to write an article in which I will try to describe my point of view on this problem.

What do you invest in? 

Assuming that the amount of capital is not yet large, one has to answer the question of what kind of investment horizon we are thinking about. Will it be a year, two, ten or maybe more? What is the purpose of the accumulated capital for which we will spend after this period.

Determining these two parameters is the starting point for which investment we will decide. I will assume that the investment will be aimed at ensuring decent living conditions for myself during the Autumn of Life.

We have therefore detailed basic information about the purpose of the investment: This is a long-term investment aimed at increasing the value of the investment, which will provide us with a prosperous old age. Another issue that we have to determine is whether we are willing to take more risk, which usually involves higher profits, or whether we want our investment not to be too risky. I will therefore present three different investment options: with a fairly high level of risk, medium and low risk.

Forex investment

Forex is a national currency market where currency exchange transactions of one currency are performed continuously. The ratio of each currency to another is called the exchange rate. Currency exchange rates are constantly changing, which is influenced by the demand and supply of a given currency. The more we can buy currency units in exchange for a certain amount of money, the more we say that the currency is strong in relation to this currency.

The strengthening and weakening of various currencies takes place constantly, their exchange rates are constantly changing. And that is the essence of this investment. Utilising and earning money at these rates. Of course, we can start trading currencies by ourselves, but if we do not know the rules governing FOREX, it is a very risky solution, I recommend to find a good fund that deals with professional investment in this market. Profits compared to ordinary bank deposits are incomparably higher, in the range of 50 - 300% per annum, but the risk is quite significant.

Investment in raw materials

Investment in raw materials (gold, silver) - for centuries gold and silver have been a valued commodity of exchange, for centuries it was money that was exchanged for goods, then it remained a parity for paper money. It is now a raw material for the production of various goods and is an excellent tool for thesaurisation - the transfer of values over time. The gold exchange rate has increased by 350% over the last 10 years, of which nearly 200% over the last 5 years.

This was related, among others, to the following. with the property market crisis in the USA in 2008, then the demand for this bullion increased significantly. Similarly, silver still has big growth prospects. Thus, investing in bullion makes the greatest sense at the time of the biggest crisis on the financial markets. Money is constantly being printed and lost in value, and gold supply is stable, and demand during the financial turmoil is higher because gold is then treated as something certain that influences its value.

Medium-term risk is that at some point we may end up in a speculative bubble on gold, but assuming that we have a stable investment, let's say USD 300 for a number of months, we will earn much more than on a bank deposit, especially in the long term.

Investing in land

3) The land is the last proposal I would like to make today. The land, whether agricultural or construction, has been gaining a lot since Poland's accession to the European Union. On average, it rises by several to several dozen per cent each year.

In Poland in 2011. the average price of agricultural land was about EUR 4.5 thousand per hectare, compared to EUR 7.5 thousand per hectare in eastern Germany and as much as EUR 18 thousand per hectare in western Germany. We are talking about arable land here, and the prices of building plots are several times higher. The increase was due to the fact that farmers were reluctant to sell, and this is still the case, agricultural land through direct payments, currently less than 1 000 to ha, depending on the crops.

So land, whether agricultural land or construction, remains a very good investment - a capital investment. However, the agricultural land has the greatest potential for growth in value, which will be transformed into agricultural parcels. However, it is not long before the investment will be written about where to invest, in what land and what conditions this investment must meet.


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