You’ve probably heard that you should diversify your portfolio, but what should you diversify into? We’ll investigate the myriad of options that you should invest in before the dollar inevitably collapses. However, we should stress that you should only invest in something that you feel comfortable with. If you like the idea of buying gold because of how stable it is, then do that. If you’re scared about the volatility of Bitcoin then it’s best to stay away. We’ll consider everything from foreign currency to real estate, land, and everything else worth looking into!
Gold, Silver & Other Precious Metals
Many people believe that paper currency holds little to no value since we’ve gotten off the gold standard (try telling your landlord that). However, precious metals like gold, silver, platinum, and many more continue to increase in value since when the dollar collapses they are getting significantly rarer over time. There is a finite amount of these metals and the more we mine them, the harder they become to mine! This typically means the earlier you get into investing the better since the price of these metals regularly only heads in one direction, up. If all else fails in the marketplace, gold and silver have always been held in high regard by Wall Street investors. Gold is used in everything from the wiring in your TV to satellites for protection against radiation! So it will always be in demand due to its unique and valuable attributes. Silver isn’t quite as valuable as gold, but it is a top-tier metal to invest in! Silver also has many industrial and luxury uses due to its value. If you’re planning on investing heavily in metals, we would recommend buying a variety of metals just in case. If you’re just starting out, then splitting your savings between gold and silver is a great strategy.
You should remember that nothing is without risk, even though metals have virtually always gone up in value, there is some risk involved with them. You should also not expect any quick returns on your investment (this isn’t Bitcoin!). A stable investment such as precious metals will generally give you a very low return, 5% would be a great year if your gold investment gave you that big of a return. However, since these are secure, they are very predictable and will almost always net you a positive gain. Even if you’re interested in getting into some of the riskier investment strategies, having a good solid foundation will give you great peace of mind in your savings portfolio.
Some more metals to consider investing in are:
- Platinum – Platinum is a metal with industrial and fashion applications, it is considered a great investment, but can be volatile as well.
- Palladium – Palladium and platinum are closely related in price as it is similar in terms of rarity.
- Rhodium – This is the metal that’s in catalytic converts (which have seen a huge increase in theft lately). Rhodium prices are fairly volatile so it may not be as good as an investment option.
Investing in the currency of other nations is a popular strategy for Wall Street firms. Currencies gain and lose value due to a number of reasons, so in essence, they are treated similarly to stocks.
- The Euro – The euro has always been a strong financial contender for investing. Any country involved in the European Union will use it, so it will have a lot of purchasing power behind it.
- The Canadian Dollar – The Canadian currency has almost always been stable, which is a great sign for storing your savings long term.
- The Swiss Franc – This currency has been steadily increasing in value for a long period of time and shows great potential for a positive return.
Currency can sway fairly heavily in times of crisis and war so we would recommend paying attention to world events if you are planning on investing in currency.
Foriegn Stock Markets
Investing in companies that don’t rely on the USD can be incredibly valuable, if the dollar collapses, to hedge your bets against any national crisis.
- ASML Holding (NASDAQ:ASML) – This company manufactures semiconductor equipment. Semiconductors are used in a wide range of everyday electronics and they are crucial for modern life.
- MercadoLibre (NASDAQ:MELI) – Provides e-commerce and fintech services in Latin America, their stock has been strong and consistent since its IPO.
- HDFC Bank (NYSE:HDB) – This is an established bank in India. It’s India’s largest private sector lender! Banks have always been an excellent investment option due to their being so stable and reliable.
Bitcoin & Crypto
Cryptocurrencies aren’t going anywhere anytime soon. They’re the cool new kid on the block that could make you rich overnight. However, they can also lose all their value overnight as well. For example, Elon Musk has enough influence to overhype or crash a stock in one tweet! For these reasons, we do not believe you should invest your whole portfolio into crypto due to the volatile nature of the asset. Bitcoin is the most well-known and used cryptocurrency in the world, and it still fluctuates by hundreds or even thousands of USD in as little as a week.
Some other popular choices for crypto include:
If you’re just starting to build your portfolio, leave crypto until the end, we would invest a small amount of your savings, into it as it is largely unpredictable. You should consider it as more of a hobby than a serious strategy. Your success will largely depend on experience, so you should learn to walk before you run.
Having physical assets is another option, you should heavily research these before investing though as their value can shift dramatically (if the dollar collapses, their value will be impacted greatly).
- Cars – Rare cars are incredibly popular to buy and hold. As their rarity and value will usually only go up in time. They do, however, have a maintenance cost associated with them and take up lots of space.
- Art – Investing in art has always been a reliable strategy for maintaining your wealth. However, paintings can wildly swing in value based on what’s popular.
- Jewelry – Jewelry adds value to the precious metal due to the skill that is required to make the jewelry.
- Firearms – Good to have and not need, than to need and not have! If you invest in quality firearms they generally hold their value over time, especially if they aren’t used and stored properly.
Land And Real Estate
Purchasing land, as well as real estate, can be an excellent choice depending on where you live. The best places to purchase land or buildings are up-and-coming neighborhoods that are showing great potential for growth. If you are using this strategy, you will want to be well aware of the market and if it is ready to burst or not. The 2008 financial crisis in the United States proved that this strategy is not perfect and can leave you stranded with nowhere to turn. The main issue is that houses and land require large amounts of cash to buy them. If the area you bought suddenly becomes an undesirable place to live due to a natural disaster, or economic collapse, you could have an asset you paid hundreds of thousands of dollars for that is now virtually worthless. If you do want to purchase land or property always have a consultant or third party come and offer their advice on the area.
If you do decide to purchase property, you will want to check if you are in a “real estate bubble” and how close it will come to bursting. The bubble refers to the phenomenon when homes have gone up in price steadily for a very long time, but maybe nearing the point of being unaffordable. Seattle and Vancouver (in Canada), are two great examples of real estate bubbles. The markets have gotten way too expensive for the value that the home is offering. Eventually, the price will have to drop a significant amount since people just can’t afford the prices except for the super-rich. The best way to get information on real estate bubbles is to pay attention to news outlets and mastermind groups in the real estate market. As long as you watch the national news regularly you will probably be familar with the bubble already. This is a phenomenon that is closely looked at and tracked by industry experts.
Storing your currency in another asset that is not affected by the currency of your country is highly advisable in case the unthinkable happens. This strategy can save you from losing everything so you still have something left over for a rainy day.