Investments

What Increases In Value Over Time

By David Krug David Krug is the CEO & President of Bankovia. He's a lifelong expat who has lived in the Philippines, Mexico, Thailand, and Colombia. When he's not reading about cryptocurrencies, he's researching the latest personal finance software. 3 minute read

Everyone wants to make the next successful investment. Protecting your capital comes first when investing, followed by generating a profit. Getting a strong investment return is sometimes like watching a dog chase its own tail. 

You want to make the next great investment, but you’re not sure where to start. I do, however, have a few suggestions to assist you in developing your portfolio.

A few investments that are likely to increase in value over the following ten years are as follows:

1. Gold

During the recent economic downturn, gold has proven to be an excellent investment. The price of precious metals has skyrocketed in recent years. Gold prices have been rising steadily and are expected to do so for the foreseeable future. 

According to legendary investor Jim Rogers, gold will be selling for more than $2,000 per ounce by 2020. Gold prices might easily rise by $700 or more over the next decade. 

For the foreseeable future, the price of gold will continue to rise due to the government’s massive spending and big deficits. However, take care not to go crazy with gold. No more than five percent of your total investment portfolio should be in this.

2. Investment Stocks

What was a stock market flop one day becomes a market darling the next. Over the previous two years, financial companies have underperformed in the market overall. Stocks in financial institutions like banks and investment banks are still trading at levels that were unimaginable even a few years ago. 

Price tags on established banking brands are significantly lower than they were in 2008. The financial sector will recover, though it may take at least five years. Investors with a longer time horizon should take action now to position themselves to profit from the expected industry recovery.

3. The Foreign currencies

The U.S. dollar has maintained its status as the world’s reserve currency throughout the recent economic downturn. Even if the dollar is doing well at the moment, inflation will eventually catch up with it and ruin the party. The value of the dollar will decrease over time due to inflation. 

The depreciation of the dollar is good news for other currencies, such as the yuan. Those looking to profit from the impending inflationary boom may consider buying foreign currency. That doesn’t imply you should put your money into the euro just because the yuan is doing well.

4. The Hard Assets

Gold’s price is not the only commodity to skyrocket in recent years. In addition to copper and silver, other hard metals are reaping the benefits as well. This past week, the price of a ton of copper hit $8,170. The price of metals like iron and copper is only starting to soar. 

The need for these goods will grow as economies around the world restock their shelves. Copper is going to be essential for many countries to support their construction and infrastructure needs. Not only will metals be in demand in 2011, but also throughout the coming decade.

Over the next decade or more, what kinds of assets do you anticipate seeing significant price appreciation? Then why do you expect this asset to be worth more in 2020 than it does now?

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