What are the best investments during an economic depression?
Posted by admin on 8 Jun 2008 9:10 pm. Filed under Investing.
MoMo asked:
Not to be all doom and gloom, but in my opinion, the writing is on the wall regarding the economy, the real estate and financial markets, and I am extremely worried about the future. So what are the best investments during serious recessions or even depressions or hyperinflation? I’m not simply talking about securing/holding onto current value, but to take advantage of the situation.
Not to be all doom and gloom, but in my opinion, the writing is on the wall regarding the economy, the real estate and financial markets, and I am extremely worried about the future. So what are the best investments during serious recessions or even depressions or hyperinflation? I’m not simply talking about securing/holding onto current value, but to take advantage of the situation.
I.e., what were the best investments during the Great Depression? Gold? Other precious metals/natural resources?
On June 12th, 2008 at 4:09 am
According to Mary Kay Ash, makeup sales went up in the Depression due to an increase in prostitution.
I think gold would be a safe assett.
On June 14th, 2008 at 10:12 am
The best Investments in a depression are much different to ones in hyperinflation. A correction in Real Estate or Financial Markets will hardly equal a world depression.
But to answer your question basically for Depression you want high quality guaranteed government long term bonds and for hyperinflation you would turn to precious metals
On June 16th, 2008 at 12:25 am
When things seem the worst, that is the best time for investing. They are not making any more land (except in Hawaii), so investing in real estate is a good thing, as long as you can pay the taxes while you are waiting for things to recover.
People that invested in the orange groves around Los Angles in The Great Depression became very rich in the years that followed.
On June 16th, 2008 at 7:11 am
any decision is not a rule .but the only exception to this rule that I can think of . in foreign investment . its the best business .i meant out of the country
On June 19th, 2008 at 9:11 am
Gold is the standard hedge against inflation, and down markets usually happen at the same time. The reality is that gold itself never truly changes in value, it is the constant… all other currency or specie changes value around the constant of gold.
Best example I can give is this: One ounce of gold will buy a man a good suite of clothes. This does not mean the finest clothing there is, but what is considered good. This valuation has held true for centuries.