Hint, the answer isn’t stuffed under that mattress. In fact, it a much better idea to invest any spare cash you have, so it works as hard as possible for you. However, deciding which market to put it in can be anything but easy. The reason for this is that the world of investment can be confusing and complex at times. Something that can make it tough to choose which areas to sink your money into and which to avoid. Luckily, below you will find a quick and simple guide on the two main types of investment, along with their advantages. Something that should help you decide which will be best for your families’ finance.
Commodities investment differ from stocks in that it is not concerned with buying and selling a share of a company, but instead on the actual commercial items themselves.
These can include pretty much anything that has a value in the marketplace, some examples being silver and other precious metals, consumables like coffee and tea, and even raw material that are turned into energy such as oil and gas. Although whether the latter is a market, that is suitable in the long term is something that is currently under debate. Read the post at forbes.com for an outline of the problem.
Gold is one of the most popular commodities to invest in. Image here
Commodities also include things like cryptocurrencies such as Bitcoin. Something that with the rise of home technology and alternative ways of paying may be worth investigating in the first instance.
One of the key advantages of investing in commodities is that you can now control them yourself, go to Commodity.com blog to find out more about this. Commodities also offer a fantastic return on your money. Of course, this is countered by the fact they are fairly high-risk.
This is primarily due to the fact they commodities deal in futures so you are essentially betting on the fact that you will be buying them at a lower price than you can sell them for. Something that means you should never invest more than you can afford to lose in this market.
Stocks and shares may just be the most famous form of investment. They focus on trading small parts of the ownership of a company. Something that means if a particular business is doing well then the value of a single stock or share goes up and vice versa if they are doing badly.
Something else that is worth noting about stocks is that they can be particularly valuable when sold to give the buyer the power to decide how the company is run. Something that is achievable if they have over 50% of shares in their possession.
Stocks make a good medium to high-risk investments for the following reasons. The first is that now it is possible to manage your own portfolio online, meaning that the risks are limited to how well you know the markets. There are also a wide range of type of stocks, meaning that it is quite likely that you will find one to suit your preferences and your pocket. Something that can make them a sound choice for your investment portfolio.