Amid the global economic downturn, are you searching for the top investment ideas of the year? You’re not alone because people all over the world are sizing up the marketplace for investments that have the potential to earn some extra income and help reduce the sting of inflation and other bad financial news. It’s important to realize that investing trends come and go, with only a few holding long-term popularity.
The good news is that along with the perennial favorites are some newer entrants on the list that offer the potential to not only earn a profit but also to diversify a portfolio at the same time. Fortunately, most of the year’s trending ideas come with low initial costs, few fees, and long-term financial viability. Besides specialty wines and gold-based derivatives, people are putting their money into real estate, dividend paying stocks, forex, and precious metals. The following details explain more about each choice.
High Grade Wines
Investment grade wines are one of the true success stories of the financial markets during the past two decades. Once several large platforms began systematizing the categories and standardizing the processes for buying and selling, the entire niche began to attract major attention. With friendly media behind it, the wine-as-investment sector grew slowly for several years. Nowadays, anyone can get involved without investing their life savings. Plus, the better platforms in the wine selling segment offer hands-free acquisition, which means buyers pay an additional fee for storage services.
In general, the spot price of gold explains a lot about the state of the current market. Not only does it serve as an indicator of public sentiment, but it also reveals how much the yellow metal is valued as a safe haven asset, one that many turn to when other market segments underperform. For so many working people who want to get involved with gold, derivatives are the easiest and safest way.
After finding the best gold trading platform, consider exploring the idea of trading gold-based derivatives like CFDs and futures for highly liquid marketplaces, fast executions, and potential profits within the speculative trading niche. Gold’s price has seesawed since January but looks to be back on an upward trajectory as the world’s financial markets, particularly stocks, are facing one of the worst eras in recent memory. From its current level of $1,765, it’s possible that the most famous precious metal could reach back toward the $2,000 mark by the end of Q3 2023 if the overall economy continues to worsen.
Real Estate Investment Trusts (REITs)
For those who don’t like the idea of sinking all their available capital into a single property, REITs give them the chance to purchase small shares of real estate and still get the many advantages that come with owning land and property. One of the main attractions is that buying a REIT is as easy as purchasing a share of stock. In the current bear market for securities, real estate can be a smart addition to a well-balanced portfolio.
Foreign currencies are always fluctuating in value. For prospective investors who don’t want to park money in the stock market, a modest forex account, properly handled, can return as much as 10% per month. Of course, the risk of loss is as great as the chance of earning a profit, but forex comes with the unique opportunity to earn equally well in up or down markets. That’s partly because every currency pair has a strong and weak side. The buyer’s job is to choose the right one.
Precious Metal Bullion Bars and Rounds
There are thousands of online and offline sellers of gold, silver, platinum, and palladium bullion bars and rounds. A few of the products are offered by national mints and carry a formal, usually very low, denomination. However, the entire segment is focused on what enthusiasts call raw metal, which nearly always refers to one ounce or fractional pieces of silver and gold. In the uncertain economic climate of the early 2020s, business is booming.
As a certifiable trend in the investing category, bullion is not new. But the recent upsurge in demand is unique to the decade’s stock market woes and political instability, two factors that nearly always push the price of precious metals higher. Should people convert all their available capital into precious metals? Of course not, but it makes sense to explore the concept of putting at least a portion of one’s portfolio into non-paper, metallic gold, and silver. The other two members of the precious metal family, palladium and platinum, can serve to diversify among whatever precious metals you choose to own.