With investing comes risk. The proposed rewards for any particular investment can sometime outweigh the risk factors but it does not always work out that way. Just look at the performance of the global stock and bond markets over the last five years. The fact of the matter is, stock markets have just returned to the levels they were at before the recession first began, way back in 2008. In today’s market, traditional investments like stocks and bonds are considered to be more risky, than ever. As a result, many global investors are now exploring more profitable alternative investments in the marketplace, like hard assets.
Since hard assets are not directly tied to the stock markets, they are immune to the uncertainty of the traditional strategies and have performed well in the last few years while the stock markets have struggled. Another appealing aspect of hard assets is that they are not correlated to inflationary pressures and therefore their value is unaffected when inflation is an issue. Many global money managers now strongly recommend that investors include hard assets in their portfolios, to protect against any losses that may be incurred by their traditional holdings.
Hard assets include precious metals such as gold and silver, oil and natural gas and commercial real estate, to name a few. They are commodities that have an inherent intrinsic value and are tangible. There was a time when the average investor had little opportunity to invest in hard assets as they were considered to be “blue chip” option, that was only reserved for the most wealthy in the investment world. That is no longer the case. There are now many avenues in the market for the “little investor” to explore if they have an interest in gaining a stake in the this profitable commodity sector. All it takes is some diligent research to discover the boundless opportunities now available.
Over the course of the global financial crisis in the last five years, while the traditional investment markets remained flat, hard asset options were delivering a great investment experience accompanied by above-average returns; to many happy investors. They are essential to the growth of the global economy and as it grows so too does the demand for these precious investment assets. They are, in effect, the supply that makes the global economy go round and round. This is why they are so valuable. With that being said, it would be wise for investors to devote time to researching investment alternatives that have been generating constant and consistent returns, year after year.