Safe Investments

How to Make Safer Investments in 2017

Whether you’ve been investing for a while or you’re just starting out, the new year is a good time to try something new with your investments. Perhaps there’s a better place to invest your money, or perhaps there’s a way to make your investments more secure. Given the current financial and political climate, there’s never been a better time to focus on making safer investments. Why not do something different with your money in 2017? Maybe you could try investing in gold bullion (long-term investment) or money market funds (short-term investment), or you could also try to find the best high-yield online savings account for you. I’ll explain each of the options below.

Invest in Gold Bullion or Coins

Investing in gold bullion or gold coins is considered to be safe and secure. The security comes from the fact that physical gold doesn’t tend to go down in value in times of economic strife. In fact, during an economic crash, gold prices tend to rise. Overall, the gold bullion market is much more secure and less prone to fluctuation than most other markets, so it’s the ideal investment for anyone who likes to invest their money but doesn’t want to risk losing it all.

Gold Bullion

Buying gold bullion also offers an additional advantage: you own the physical gold, so it is not held or partially owned by a separate third party. This means that you avoid the additional risk of a company or financial entity going under and taking your investment with them.

If you’d like to invest in gold bullion or coins, then keep an eye on the London Fix. This is the official price of gold each day, based on various economic forecasts, the political climate, and gold demand. The London Gold Fix is the price determined in the London markets and this value is then fixed and used by many other countries around the world. The London Fix is updated twice a day, at 10.30am and 3.00pm. London Gold Bullion has a widget on their homepage that gives you real time updates on the value of gold. It also offers free delivery on its gold bullion – something that can get pretty pricy otherwise!

High-Yield Savings Account

High Yield Savings

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If you don’t have enough money to begin investing in gold just yet, then finding a high-yield savings account instead could prove to be a shrewd move. Normal savings accounts that people usually get with their current account, only usually offer 0.01% interest rates. High-yield savings accounts, however, offer around 1.0% interest and sometimes as much as 1.5% interest. This means that a big bonus, previous savings, or perhaps inheritance money, can all make much more for you if you move it into a high-yield savings account instead of a standard one.

Look out for a high-yield savings account that gives you more perks and control over your money. One thing many of the better accounts offer is ATM access. This gives you the flexibility to access your money should you need it, as opposed to having to go through painstaking, lengthy processes to access your own money. Another good perk that you’ll find with the better high-yield savings accounts is that there isn’t a minimum deposit amount, so you can add in deposits in little dribs and drabs if that’s how you prefer to do it. This is especially useful if you’re self-employed and make different, inconsistent, amounts of money each month.

For peace of mind, you should make sure you trust the bank or organisation you’re making the savings account with. Barclays’ online savings account offers a very high rate of interest and it is a name you can trust. Shop around, however. Make a list of different high-yield savings accounts and put their pros and cons in bullet points. Try grading how much you trust each bank and using that along with the pros and cons when deciding which to go with.

High-yield savings accounts are relatively safe. And if you’re still interested in investing in gold bullion, you can always use a high-yield savings account to generate enough money to then buy some gold bullion when the gold prices are lower.

Money Market Funds

Money market funds are low risk and should always gain some kind of positive growth. This rate of growth should be above the rate that banks lend to each other, which is called the London Interbank Offered Rate (LIBOR). Money market funds are designed to maintain liquidity, so you can withdraw your investment quickly and put it into something else if you want to. Money market funds are often used by those who have larger sums of money to invest as they look to safeguard their cash.

Despite the risk of money market funds being very low in comparison to other types of investment (such as bonds, real estate, stocks, etc.), it isn’t fool proof, so make sure you read around the process a little more before you start investing.

And that’s all the advice we have for you in this article. A new year can represent a change in attitude; it can be a time to try something new. I hope this article has given you some investment inspiration and that 2017 is a great year for you!

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