Increasingly, safe havens for savings and investments are becoming somewhat thin on the ground. Times were turbulent before the whole COVID saga kicked off – for those not employing a super pro active financial advisor, things have been looking increasingly bleak ever since.
Still, savvy investors have plenty of options to choose from, which if nothing else are preferable to allowing savings to stagnate in a low-interest account. How things will pan over the next year or so is anyone’s guess, but there are currently two semi-safe havens worth considering – precious metals and commercial real estate.
Precious metals like silver, gold and platinum continue to be the instruments of choice for many experienced investors. Valued for their rarity and the roles they play in the manufacture of electronic components, precious metals are largely immune to the effects of inflation, recession or swings in currency values.
Unlike many comparable investment vehicles, precious metals continued to perform with strength throughout the height of the COVID-19 crisis. The S&P GSCI Precious Metals Index has performed particularly well, generating a total return of 35.4% over the past 12 months. Investing in precious metals brings no outright guarantees to the table, but is just about as safe a bet as any available right now.
Investors worldwide are always on the lookout for potentially profitable commercial property investment opportunities. Even when other markets fluctuate or falter for any reason, commercial real estate retains its desirability due to its unique stability. It is a consistently stable and robust investment option, with the potential to deliver generous long-term returns.
In fact, research suggests that annual return on commercial real estate investments over the course of 20 years is approximately 9.5%. To put this into context, the S&P 500’s average annual return over the same 20 years is almost 1% lower at 8.6%. What is also reassuring for many investors about commercial real estate is the way in which it is a tangible asset. When you invest in a commercial property, you take ownership of something that you can see, feel and show to others, in other words something tangible. Often more reassuring than purchasing stocks and shares, which have no physical form to speak of. Additionally, if you are in a joint business, one would be strongly advised to take out keyman insurance to guard against one of the partners in the business from death or serious injury, thus having to leave the partnership.
Commercial property is a comparatively liquid asset, making it a good investment option for long-term gains, rather than short-term profits.
Independent Advice and Support
Now more than ever, the importance of seeking independent expert advice before making any major financial decisions cannot be overemphasised. Semi-safe havens and invaluable investment opportunities do still exist, but the situation is more dynamic and unpredictable than it has been in some time.
Working with an experienced broker or investment specialist can help ensure you make an educated and informed decision, in order to safeguard your financial future.