Where You Can Invest Your Money and Be a Winner
Investing your hard earned money is not an easy task. There are many investment proposals out there, and yet some of them do not really work, others may work but require having rare skills, and others are very difficult to manage. In order to choose one investment over another, you have to make sure it fits your risk profile and patience. Some investments are safer than others, but take too long to make a profit.
One way to invest money is to buy real estate, in general may or may not be a good idea, it depends on the country where the property is located, and future economic growth and demand. In some parts of the world real estate will make you money, but not much, because of heavy taxation and maintenance costs. It’s only worth investing if you can get onto the property ladder and buy many properties over time, not just one.
In general, all popular investments that don’t require some kind of expertise on your behalf, will not make you impressive money. To make serious money you have to have something more, than other investors don’t have. You may be able to make much more money in the antiques market, rather than in the real estate market. The antiques and collectibles market is massive, is rather slow and highly illiquid, but offers low to zero risk investment opportunities. One more advantage is that in most cases you don’t have to pay any tax on profits made from antiques.
The most famous, and probably most popular market is the antique stamps market. Millions of collectors from around the world collect stamps. Their value ranges from under $1 to several $100s each. And there are also higher categories of stamps, whose value starts from $1000s and can go into hundreds of $1000s or over $1million each. Stamps are especially interesting because they can be transported easily, and their value is unknown to most people. If for example you attempt to fly from one country to another, and you are carrying gold worth $40,000 on you, in some cases you will be asked to provide documentation proving that you own this gold. In other cases you may not be allowed to leave the country with this amount of gold, for national economic reasons. But if you were carrying even $400,000 worth of stamps, nobody would bother checking on you and asking you questions.
There are many more kinds of antiques, such as oil paintings, old clocks, golden items etc. These are interesting too. But do have limitations. If something is valuable someone is bound to spot it before you do. Stamps are more obscure, more easily transported and you are more likely to make a profit from your first year of dealing.
In any case, antiques are a rather slow, highly illiquid market, but so can be real estate too. Out of these two types of investments I can confirm that antique stamps are better. After all you can invest even as little as $3,000 in stamps, and make a profit as soon as one year, a profit of at least $500. Whereas in the real estate market there’s no place where you can safely invest $3,000.
Investing in Green Energy
Green energy is a fascinating emerging market. Demand for new, clean and affordable energy has motivated inventors and entrepreneurs around the world, to test new methods for producing energy. This is a higher risk market, and you always risk losing all your money, but the rewards can also be very big. You can invest in various energy startups today, but you have to really read a on the subject, because there are many fake inventions and conmen in these startups. Only a few are totally honest and their invention will make money.
You can also invest in smaller green energy projects, such as small biofuel producers and small companies that produce materials, materials that will be used in the next generation batteries. In any case, there’s no money to be made in solar energy investing, at least not for small private investors. Most of the money will be made in inventions relating to biofuels and batteries.
The green energy market is related to new materials science and the possibility to produce new materials, to find ways to recycle waste materials, and to even replace precious metals, such as platinum, used in fuel cells, with a cheaper alloy. The company that will invent such an alloy will make billions, no doubt! These are the startups to watch out for, and to invest in, but only after confirming their claims.
In any case, be skeptical of ridiculous claims made by inventors, if a company or startup claims to have invented a new super cheap, infinite fuel, then it’s probably a scam. All real energy inventions have limitations and associated costs. Most scam energy startups use trickery and cleverly configured scam devices that operate on real scientific principles. It’s very easy for example to make an automobile appear as though it is running on water, the car will seem to run on water for many hours, and it will really work, but deep inside the car there will some hidden rods of reactive metallic fuel, such as aluminum. I have seen such scams in action, and on live TV, and some of them managed to fool investors and steal their money. So be careful not to believe ridiculous claims, even if there’s confirmation by some scientists, anybody can be corrupt to say anything. The bottom line is there’s no low cost infinite energy!
Platinum is a precious metal, and it’s used in the industry both in splitting water into water and hydrogen, and also in fuel cells, where hydrogen is turned into electricity. Scientists expect to come up with a cheap alternative, an alloy of some kind that will be just as effective and durable for these chemical processes. That alloy, if invented, will make billions of dollars!
Investing in Commodities
Commodities are more or less known, they are listed in various exchanges around the world, as contracts. Commodity investing is also related to green energy investing, because some commodities such as sugar and corn, can be used to make biofuels. This means that should oil prices rise to very high levels, the said food commodities will also rise a lot, for at least one year. But what is less known about commodities is that they can be the most profitable to trade. Commodity traders and investors are specialists, who know the secrets of these markets very well.
Commodities are less risky than classic stock market investing, because you are investing in a market which has certain demand and a given supply. A stock for example, may be a bubble, and its price can go to zero, remember ENRON and others… But a commodity such as corn or oil cannot go to zero, especially not corn, never, and even oil cannot go to zero by any means. Crude oil may be replaced some day, by new fuels, but even if it happens it will take years and still it will never reach zero, and you will still be able to invest in it. All commodities, from metals to grains, are useful in many ways to the industry. And if a scientific breakthrough happens, some of these commodities will be gradually affected. But I do believe that changes are limited, gold for example is unique, and will remain a unique and expensive metal. Whereas crude oil is not so unique, it can be produced by various artificial ways, and it may one day be totally replaced by other materials, or be artificially produced. And still, all commodities, including crude oil are much safer to invest in, than most other stocks in the stock market. You can also invest in related commodity stocks, just by doing some company research you can see which companies are fairly valued and worth investing in, through their stocks.
Investing in Currencies and Commodities Short Term
Investors today can make a lot of money making short term and medium term trades in the forex market, and in the commodities market. One way to do this is through thorough research and the ability to think originally. I have found in actual tests, that some of these markets are predictable. And one way to trade these markets is through CFDs or Binary Options. By thorough research I mean looking at a market’s history and volatility, how much it can move up and down in any given month, its 200 day moving average, and seasonal patterns. Seasonal patterns are especially important in agricultural commodities, not so much important in metals or crude oil. And by the ability to think originally, I mean the ability to question other investors’ opinions, and to maintain your own judgment.
The internet is filled with various experts and websites offering analysis on this or that market, but for the most part they are not useful. These analysts use obsolete analysis methods, which lag behind market price and have nothing useful to offer. In fact, on the same site you will often find one article that is bullish on a market, and also another article that is bearish on the same market. There’s no real analysis done. That’s because real analysts trade the markets themselves, and don’t write analysis articles.
In any case, serious trading efforts will eventually pay off, and binary trading can be used even more so, through simple or complex trades, where the trader can trade market volatility and trends. It’s a good idea to start trading One Touch binary options, and not the fast 5 minute Call and Put binary options. You will gain most expertise on the daily chart first, and then possibly on the 4 hour and 1 hour charts. Moreover, most markets seem to be most predictable around the one week to two week period, a period of between 5 and 10 trading days. That’s what I have found in my own research and trading. The payout of an One Touch binary option can be as much as 500%, and the probability of success is still greater than in a 5 minute trade. 5minute binary options are only good for scalping currency pairs, but not for commodity trading.
Investing is a great way to make money, but you have to look beyond the obvious. There only few major cities and areas around the world where I would invest in real estate, and even that would require a lot of money, but in some cases it’s well worth it. For smaller amounts of money, I would invest in the antiques market, and in specific items that I’d find most passion reading about.
If I were to invest $5,000 today, I would invest $3,000 in high quality antique stamps, getting them at a discount of at least 70%, relative to their catalogue value. I would also invest the remaining $2,000 in commodities trading, trading some commodity through binary options, around the 1 to 2 week period, though I am not fully sure which commodity is best, the grains seem to be of most interest. I would not invest in any startups, of any kind, unless I understood the concept and technology used, very well. There are some startups worth investing in, the amounts needed would be $10,000 or more, and these are startups in biofuels and other related products.
New investors need to be careful and not to get excited about startup opportunities they don’t understand. To be fully safe, it’s a good idea to invest at least half of your money in the antiques market, and only the other half in other investments. Antiques are illiquid, often hard to sell, and take a long time to yield a profit, but they do make 7% per year. In some cases you stand to make a small profit right away, usually in small value antique items.