Acquiring wealth through material possessions has always been a goal for humanity; every civilisation has its own unique financial system, which typically uses gold as the foundation. Most people understand wealth generation, which is the only way to ensure a comfortable old age and the mysterious world of investment is currently undergoing some changes.
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Digital currency
Some think that crypto is great and in many ways, it is. Nothing could be easier than paying by scanning a QR code and most governments are fast-tracking digital currency, which might not be such a good idea! Bitcoin is leading the way in the crypto race; if you had been smart and acquired 500 Bitcoins when they were one dollar, you would be laughing all the way to the bank! Investors have made and lost millions of dollars trading crypto, which definitely looks like it is the future.
Global markets
While global markets are nothing new, hi-speed fibre-optic secure connections allow real-time trading from any location on the planet. News travels at the speed of light (7 times around the Earth in one second) and a private investor in London can bid in real-time at an auction in Sydney and thanks to VoIP, our blue planet has shrunk, with real-time video calls that connect people wherever they are. On the topic of finances, make sure that you get the best deals in banking, specifically with term deposits that pay 4.65% p.a. There are no risks when you deposit your money in an established bank and some offer better terms than others; Google can help you find the best rates for term deposits and savings accounts.
Precious metals
Gold and silver have long been used to store wealth and prices fluctuate several times per day, yet there are many other precious metals, such as titanium, palladium and tungsten that are used in hi-tech industries, which increase demand and the price goes up. If you were to compare the precious metal market of the 1950s to today, you would see many more precious metals in today’s market. Gold has traditionally been used to hedge against inflation and many investors hold gold certificates rather than the gold bullion, as this is more convenient. That said, some private investors insist on taking physical possession of their gold. Here are a few finance tips for young people in 2023.
Global uncertainty
We have just come through a pandemic and this wreaked havoc with all global markets, with many investors moving out of stocks and shares and into something stable. Inflation is currently high here in Australia and in other developed nations, which is cause for concern, while the US dollar is not doing well. The impact on global markets was similar to that of WW2, with many small businesses closing their doors and the effects of the Covid-19 pandemic are still rippling through major marketplaces.
If you are planning to set up an investment portfolio, talk to a broker and make best use of their know-how and with a solid plan, you can make wise investments and reap the dividends.