To say a safe investment is synonymous with lower returns is not always the case. Gold is one investment you can make that is both safe and lucrative.
Reputable Value of Gold
The stable supply of gold is one reason why it has such a high investment status. This metal's value tends to trend opposite of the general economy. Therefore, its performance is likely to rise during recessions, as described by SeekingAlpha.com's contributor Jeff Clark. During the last three or four years, for example, gold has reached almost $2,000 per ounce, according to Business2Community.com. Even though it has depreciated since then, it's still trading at healthy rates and predicted to gain value. Another benefit of gold is its liquidity. Unlike bonds, you can get a return on investment without waiting for a maturity date.
Reputable dealers like US Money Reserve, America's largest distributor of government-issued precious metal coins, are well established and trustworthy companies. They'll deliver a quality product at a fair price. Such dealers handle silver, platinum and gold coins as well as bars of bullion. Also, practice diversifying your portfolio. Diversification keeps some of your money safe while providing the opportunity to score big with some of the rest.
Investing in gold, like any other type of investment, isn't absolutely foolproof. Time your purchases so that you buy low and sell high. Keep in mind that gold is a long-term investment. Also, gold and other precious metals that are kept for years and decades prevents worry from daily or even monthly fluctuations in price.
Bonds, Stocks & Gold
How does gold measure up to bonds and stocks? Risk-averse investors do look into bonds as an investment instrument. Lower-ranked bonds are riskier, but can bring in more money with maturity. The safest bonds don't have much of a return — in fact, their yield is generally so low that inflation outpaces it — so gold is likely preferable for investors.
Stocks are also instruments many people think of when they hear the word "investment." Remember stocks are also risky. The changing winds of the market can destroy even the largest company's fortunes in short order. On the plus side, the same changing winds can make the right stock into a huge moneymaker just as fast. With stocks come risk, but if some danger is tolerable for you, then it's a good idea to throw a few thousand dollars toward the stock market.
Overall, gold is the best investment for your $50K if you want the safest investment that won't wither away to nothing. Combine multiple types of investments as well. You'll have a safe nest egg alongside chances for some nice bonuses along the way.
