How do you invest your money during the war… Beware of these mistakes
There is no louder voice amid the noise of the Russia-Ukraine war than the voice of security, especially economic security and investment. So how do you invest your money in times of war?
And from the dossiers of previous wars the world has gone through, the answer becomes more important than the answer to victory: How do we secure our resources and invest our money safely?
In most cases, the answer is to flee, as the best investment of money in times of war is to flee the country with your money.
Is selling assets a solution in times of war?
In other words, you sell what you can, get rid of the local currency, withdraw as much money as you can from the banks, take the rest in one hand and your family in the other hand and leave irreversibly.
Such an answer is economically correct, but the question is: is there an opportunity or possibility for those who decide to stay to invest their money inside during the war?
The Russian war takes palladium and gold to the top. Is it time to buy?
From here, we examine the experiences and advice of major traders in times of war and the safe way to deposit money as follows:
Getting rid of cash in wartime
After risky investments, the worst thing you can have in a crisis is money (cash), and the worst thing is money in banks.
Withdrawing money is absolutely selfish and harmful behavior for the state, and its negative impact will increase exponentially as its practitioners increase, as is now the case with Russia and Ukraine.
Theoretically, the first economic response in a country before a crisis occurs is the withdrawal of capital. We’re not talking about the thousands in your account, we’re talking about the billions owned by first-mover and acting investors. This situation, which constitutes the beginning of the collapse in the value of the currency in order to save the money from the country by quickly withdrawing their money from their balance or converting them into a foreign currency, occurs in a successive period when the state stops at one point. preventing or restricting the withdrawal and transfer of money and the purchase of foreign currency.
Gold prices are paying the bill for the Ukraine crisis. Is it time to buy?
If you’re lucky, you’ll get rid of as much local currency as possible, and if you’re not aware of it, the lesson and first rule of your investment plan in times of war is not to keep liquidity in your pocket. pocket.
The traditional solution to investing in times of war is to buy gold.
Practically speaking, according to Warren Buffett’s repeated advice, one of the best solutions in times of economic crisis and war is to buy gold, but why is gold considered the ideal solution? Are there any alternatives?
Gold, which is the companion of all precious metals that can be purchased such as silver, diamonds and jewellery, is accepted as an economic tool against economic crises and fluctuations, and its global value creates a physical security barrier for those who own it. It is considered the best investment in times of war, but in most cases after the crisis is over.
Most people prefer this traditional solution at the onset of crises, causing it to be scarce for latecomers, but there are non-traditional alternatives to gold such as antiques and artwork and expensive furniture, modern electrical appliances, valuable clothing. or even rebar pieces can be included. If there is good storage opportunity to maintain the quality of these stocks.
The main problem with gold solutions (and other alternatives) is the possibility of securing, concealing or shipping gold solutions (and other alternatives) as security considerations reach their lowest levels in a war-torn country and the likelihood of theft, looting and property damage increases. .
Own own assets with conditions in times of war
Owning assets is one of the aspects of investing that needs to be carefully implemented, and assets are characterized by maintaining their original value over time, so they are initially considered a safe investment that is unaffected by the deterioration of the economic situation. country.
In this case, one of the best options is definitely to buy vacant land with building permits, then farmland and finally buildings.
And as for the dangers of such an investment, firstly, the buildings that will be destroyed by fire and bombardment, and secondly, the possibility of the crops being stolen or the land destroyed and burned if it enters the conflict circle. and the final risk is the complete loss of property rights and the opportunity for the state to acquire or expropriate private property.
Therefore, for such a long-term investment, you should base your direction on an appropriate choice that takes advantage of the dramatic drop in land prices and avoids the risks of property damage and loss.
Some non-traditional alternatives such as livestock, automobiles, business licenses and property rights may also be included in the asset classification.