Posted on 26 February 2013.
If you do not know where to invest your money right now, you are a member of a large and inclusive club. With the fiscal cliff debate in the past, it seems like the path forward should be clearer. Nevertheless, confusion reigns with regard to inflation, currencies, energy sources and debt.
During past periods of market distress, many investors took refuge in things like bonds and cash. These assets did not offer opportunities for significant gains but they were essentially guaranteed to prevent losses. However, these sanctuaries are no longer very welcoming. Inflation has made cash less inviting. The overwhelming amount of government debt has turned bonds into much riskier investments because suspicions about possible defaults are rife.
If you want to know where to invest in the near future, you should look for companies that produce assets that will always be useful. Mining companies are gaining a lot of attention for this reason, as are energy producers. Even if some of these stocks merely hold their ground in the future, that will be an advantage over the losses that some foresee.
A number of investors also believe that physical quantities of precious metals are good investments right now. These assets are where to invest money in order to defend your wealth against inflation. Gold, silver and other members of this asset family will hold on to their values even as currencies lose theirs.
You can also invest in precious metals through exchange-traded funds (ETFs). Shares in these funds act like stocks but tie their values to precious metals as underlying assets. These assets may be where to invest money most safely for the next few years.
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