Protect Your Wealth

Before you read

This article is not investment advice, but our subjective opinion. The content contained herein, despite our best efforts, may contain errors leading to loss of money. You use the information contained herein at your own risk.

Diversifying Your Portfolio Just Got Easier!

Have you ever wondered how to increase the security of your money in a simple way? In this article, we will present two simple and different ways to diversify and increase the safety of your savings that almost anyone can use. We intentionally did not include instruments such as stocks, bonds, mutual funds or ETCs, which, based on historical data, would yield the best results. They require many additional steps, such as setting up a brokerage account, knowledge of the instruments, analysis of the economic situation and much more. We will write many more articles showing how to work with all the financial instruments that we, as private investors, use almost every day. Let's start with something simple.

Why Currency Diversification Matters

Holding all our money in only one currency makes the value of our money directly related to the economic and political situation of the country we live in. I think you will agree with us that the probability of a worse economic situation in several different countries at the same time is less likely than in one.

Method 1: Currency Diversification

The first way we'd like to present, which doesn't require much time, is to spread your money across four or five different currencies, not including your local currency. The currencies that have historically been considered the safest, and thus called safe haven currencies, are: USD, CHF, JPY and EURO. We would like to add the Chinese CNY to these four currencies, because current official inflation is less than 0.4% as of the date of writing this article. Here's how we would approach it:

1. check online which trusted bank offers the cheapest foreign currency account and offers the currencies we mentioned, and then open an account there without a card, since we won't need one, and it may generate fees.

2. often the cheapest or even free foreign currency accounts have a high cost of currency conversion. We, wanting to lower it, will use an online exchange office. Again in order to find our favorite we use the search engine. We create an account there and, after verifying our data, transfer the money we want to convert. We divide our capital into four (if one of the proposed currencies is our local currency) or five equal parts. After successful transactions, we transfer the funds to our currency account. We do not recommend keeping the funds in an exchange office, as in the event of an updraft or breakage there would be a greater risk of losing our funds than if we kept them in a bank account.

Method 2: Investing in Physical Gold and Silver

The second way, which we recommend independently of the first, is to acquire physical silver and gold in the form of one-ounce coins. Precious metals gain in value in times of rising inflation, and more importantly, their valuation over many years is more stable than any currency, and their small size allows for easy transportation. When buying silver or gold coins, we should pay attention to:

1. weight - because there are two different ounces in use: the troy ounce ~ 31.1 grams which is standard for bullion coins and the avoirdupois ounce ~ 28.35 grams.

2. popularity - coins with high popularity will be much easier for us to cash than those that many people don't know about. Some of the most popular are: American Silver Eagle, Canadian Maple Leaf, Austrian Philharmonic, British Britannia, Australian Kangaroo, Mexican Libertad, South African Krugerrand.

3. purity - to make an informed decision, you should compare prices based on the actual amount of gold contained in each coin, not just its nominal value. The 22k gold coins, such as the popular South African Gold Krugerrand and American Gold Eagle, are widely distributed and sought after by investors. However, it's crucial to note that these coins contain a mix of metals, including silver and copper, which increases their resistance to scratches and warping. While this blend may offer some benefits, it also affects the coin's gold purity. To calculate the weight of pure gold in a 22k gold coin, you'll need to multiply its weight (33.95 grams) by its purity (0.916667). This calculation yields approximately 31.12 grams of pure precious metal contained within each coin.

4. place of purchase - gold coins, due to their 70 times higher price than silver coins, are sometimes counterfeited. For this reason, we recommend buying from reputable places.

Conclusion: Don’t Wait And Take Control of Your Finances Today

By implementing these two simple methods, you can significantly reduce the risk of your savings and protect your wealth in today's uncertain economic climate. Remember to always do your own research and consult with a financial advisor before making any investment decisions.

Thank you for your time, if you liked the articles don't forget to like and share the link. - Team MONEY BUBBLE