It’s undeniable that the Coronavirus crisis is shaping the world. Now, we do not know what will happen in the future, especially economically speaking. While many people speculate a potential world-wide economic crisis, the big question is: What to do with your money now?
Moreover, it’s normal to be financially insecure, especially with an uncertain future ahead. However, the good news is that there are several things you can do to keep your money “safe” in case the markets crash. Actually, in the best case scenario, your savings may even increase if you’re willing to take the risk.
Invest In Gold
No, we are not referring to a gold watch or chain, but to gold bars. Gold has always been a safe haven, since its price does not usually fall during crises. In fact, according to Forbes, gold was one of the highest-performing investments in 2019. Also, it’s pretty easy to hide, either in your home or in a personal bank safe (yes, just like in movies). The best part is that you can buy as much (or as little) as you can afford. From thousands of bars to a few grams. So, even if you do not have much money, you can still invest.
What About The Stock Market?
Furthermore, if you don’t mind risking a part of your money for the possibility of winning more, this is your moment. Although, that requires you to investigate before, and not just jump at the opportunity. Because if we buy the right shares with the right company, we can not only avoid the crisis but not have benefits. However, there is always the risk that if the company goes bankrupt, we may end up loosing it all. Actually, people who invest in indices, instead of trusting a single company, they trust all those that make up the index. So betting that the US DowJones or the Spanish Ibex35 raises is less risky than trusting that one single company will.
Leave Your Money Alone
Te most important thing to do with your money, is knowing what you do before starting to invest. So, if you do not see yourself knowledgeable enough to invest in the stock market, it is best not to do so. And since there are many people who do not trust keeping their valuables at home, gold is no longer an option either. However, there is the traditional alternative of banks.
In fact, you can leave your money in your account or put it in a savings account that generates enough for you to fight inflation (approximately 2%). This ensures that you don’t lose purchasing power. Even if the worst possible scenario occurred and the bank looses, there would be no need to worry, because most countries have a system that protects accounts with up to 100,000 euros.