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If you have invested consistent with the amount of money, can it make your financial life peacefully in the future? The answer is still uncertain. Everything depends on the investment options that you do. At this time you must be careful to select the type of investment because of inflation. It is the results of the global economic crisis.

If you already invest your funds but inflation rate is above the return that you expect then your investment result is not maximum or can decrease. For example, deposits or mutual funds/stock, now the return of deposits is under the inflation rate, as well as with the value of mutual funds/stock move down to 50% due to global crisis.

So if you want to enjoy your investment even if the inflation still rises, then you should select the type of investment with the return above inflation. There are several types of investment that is capable of conquering inflation, namely:

Property. Such as house, apartment, shop, land and so on. Land price increases almost every year and it exceeds the rate of inflation. This is a result of the increasingly high demand while the supply does not increase significantly. Land price will be increased in strategic locations and it make to encourage high-value properties.

Gold. Such as golden jewelry and gold bars. Golden jewelry has re-sale value that is lower than gold bars, because of production cost. But both are equally easy re-sale in any condition.

If at this time your financial ability is limited, then you can start your investment with the gold, because it does not need big funds. Finally, the more important is you must be consistent to investment your funds (read here for the explanation why should you invest).

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6 comments

Topher said... @ March 19, 2009 12:17 PM

I think gold is an excellent investment right now. Gold usually does well during recessions, although it usually just keeps pace with inflation.

Robin said... @ March 19, 2009 7:48 PM

Land would be my first pick to invest in. The other markets are just too uncertain at this time.

Eric said... @ March 19, 2009 7:53 PM

Very true. Although recent news might suggest otherwise, real estate really is usually a very good investment. It's rare that property loses value so quickly like what has just happened.

kris said... @ March 19, 2009 11:20 PM

correct, Gold is an excellent investment. Thanks for commenting me

A. Goldberg said... @ March 20, 2009 6:53 PM

Very true - thanks for bringing this up. I'll visit again!

Sherin said... @ April 05, 2009 7:57 AM

That is right information. For properties, you can even invest with real estate trust mutual funds generally known as REIT's.

You can invest in Gold ETF and gold mutual funds as a solution to get safety from threat or value lose of physical gold as well.

Sherin

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