What is the safe haven for one’s money during crisis?
Gold, diamonds, real estate, or a bank deposit? Which is the safest haven for investing our money in times of crisis. Interestingly enough, bankers turn out to give the most honest advice. When a client asks the bank how can one invest successfully in a small business, they answer: “You cannot do this. Invest in a big enterprise and wait.”
Despite a number of speculations related to the price of gold, the precious metal has remained one of the safest financial havens for the past 11 years. Experts say that the price of gold would continue to increase during the next 5 or 6 years. This is due to the negative effects of the crisis worldwide. For the past year the price of gold in Bulgaria has increased by 7%. No bank offers such an interest rate. 50 or 100 gram gold bars are the most popular among citizens. In the past year sales of gold bars marked a 135% increase in Europe. The gold rush has spread fast and even French designer Jean Paul Gaultier created a special Gaultier bar of pure 24-carat gold.
The first diamond show room was recently opened in Bulgaria. This happens in a time when more and more experts speak of a second wave of the crisis hitting Europe. Diamonds have high liquidity and investments in them bring 5-6% of annual profit. Moreover, “diamonds are a girl’s best friends,” according to Merlyn Monroe.
Financial experts in Bulgaria say that bank deposits are a safe option too and they will continue to grow in 2012. Deposits are protected by the Bulgarian state and according to statistics by the Bulgarian Central Bank, citizens in this country think deposits are the most secure place for their finances. Bank deposits bring about 5% of annual profit.
Real estate is also an option for investments. Prices are currently low and a number of real estates are sold cheaply by banks. Bulgarians are traditionally attracted to investing in real estates but they do it not to make profits through speculations but to provide a home for their children and grandchildren. According to experts, investments in smaller real estates that can be easily lent or sold later, are the wisest choice.
A major piece of advice given by experts is not to invest all your financial resource in just one place. The investment portfolio must always be diverse, as we must not forget we live in times of crisis. Once they asked an economist if his forecasts always came true. “Yes,” he answered, “Sometimes just the date is not right.”
Text and photo: bnr.bg
(14.02.2012)