The best investments for an economic collapse according to what the super wealthy are currently doing include precious metals, cryptocurrencies and rural land. This is a time to be getting into real, tangible assets.
During a recession, an investor needs to understand where to look to be able to make the best quality financial decision on their assets and investments. History has shown us the damage that can be caused if you become complacent.
However, if you’re able to read the market and spot the hidden opportunities, this could be the difference between going broke, to securing your financial future.
THE THREE (3) KEY HIGHLIGHTS:
- Opportunity is found in the midst of crisis. You just need to know where to look
- By following what the wealthy are doing with their money, you can gain great insight into the investments you should avoid, and where you may consider
- The secret to great wealth in an economic collapse is to never overleverage in one sector or market. Always practice proper risk management.
Background on Economic Collapses
Looking back on historic economic collapses like the Great Depression in the 1930s, Wall Street Crash in 1929, Great Recession in 2007-2009, the first thing that comes to mind is the financial impact it had on many families and individuals.
Even as recent as 2015, countries like Greece and Venezuela experienced major collapses in their economy which affected many people’s livelihoods, and we saw many flee the country as a result of this.
Whenever a country has an economic collapse, the main emotions and actions surrounding the population are fear, loss and suffering.
However, what we often forget is the gain, opportunity and prosperity that can come out of a recession. All the elite know this to be true, which is why they thrive when the economy collapses.
For example, did you know more millionaires were created in the Great Depression than any other recorded time in history!
“The time to buy is when there’s blood in the streets, even when the blood is your own”.
– Baron Rothschild
That is, all the super wealthy know the big opportunities are always found in the midst of crisis if you know where to look.
To find the best investments for an economic collapse, the key is to study where the wealthy are putting their money, and simply copy them.
Before we look at some of the best investments for an economic collapse, we’re going to cover some of the WORST investments to be in.
3 WORST Investments During an Economic Collapse (Following What The Wealthy Are Doing)
1. Bank & Fiat Currency
With the constant changing laws and regulations, this is pretty obvious. Many of the wealthy are spreading their risk outside of fiat currency.
They’re diversifying into many different currencies or assets outside of normal fiat cash. Why? Generally when we experience an economic collapse, one of the easiest things for governments to seize is cash.
When you study any historic civilization collapse such as the Roman Empire and compare it to today, a lot of the same patterns are being repeated. Crackdowns of personal freedoms, movement of money is being tightly regulated, and more.
Government debts, taxes and inflation continue to soar. All these factors together slowly decreases the value of the dollar. These are all signs of an unsustainable currency or system.
Think of inflation like a balloon. The more our economy inflates, the closer our dollar gets to “popping”. Or in other words, crashing.
People are losing trust in the fiat system and looking towards alternative solutions.
2. City Properties With Mortgages
City properties (residual and commercial) with leases can be an interesting bet during any recession as statistics show an increase in vacant or empty buildings due to loss of incomes for many families and individuals during these times.
We’re predicting this is going to be even more common in today’s economy as many people look to flee the major cities from all the restrictions, mandates and uncertainty.
As the economy downturns due to a spike in unemployment, the challenge with buying a property in the city is either yourself or a tenant not being able to pay the mortgage due to increasing interest rates.
This means if you fall behind on the payments, you could potentially end up losing the property to the bank. If you don’t have sufficient cash or high equity in the property, this could be a risky investment for you if you base your judgement from the statistics in past recessions.
Property is one of the easiest assets for governments or banks to seize during an economic collapse if you don’t know what you’re doing.
3. Highly Speculative Investments Without Substance
Very few of the wealthy invest their money into projects with big hype, but don’t actually solve a real problem.
Many people follow the trends and get attracted to the potential gains of a lifetime. They want to get rich quick. However, most of the wealthy stay focused and are only interested to put their money where it will offer stable and consistent appreciation.
The elite tend to avoid new and unproven industries, cryptos with no substance such as Dogecoin, Shiba Inu, as well as projects which have major volatility. What may be a day trader’s dream is an investor’s worst nightmare.
In times of uncertainty, the market will move at a much faster rate especially if it’s a very speculative industry or project.
Now with all this in mind, let’s take a look at some of the best investments to survive an economic collapse.
3 BEST Investments During an Economic Collapse (Following What The Wealthy Are Doing)
1. Precious Metals
In times of economic uncertainty and recessions, gold and silver tends to be two of the strongest performing assets since many people turn to them as a ‘safe investment’ option (particularly gold).
For example, in the Great Depression, gold went from $20.67 in 1929, to $35 in 1934 (total appreciation of 41%).
However, if you’re going to invest into gold or silver, it’s important to know how to purchase it privately and safely. For example, rather than only buying it in your local country, you also should consider buying some offshore stored in vaults.
Why? It’s important to have a back-up in case governments decide to crackdown. The last thing you want is to acquire a large amount of precious metals, only to have it seized from you.
For example, in 1933, President Roosevelt executed an order which made it illegal to old any form of gold in America, and required everyone to return any gold coin, bullion or certificates to the Federal Reserve in exchange for $20.67 per ounce.
If you plan to invest in physical gold, get help from the right experts to purchase it safely.
Copper, platinum and palladium are some other examples of precious metals which many investors tend are turning to.
2. Cryptos
In the 1990s, we made a shift from the Industrial Age into the Information Age, when the likes of Google, Wikipedia, Facebook and others were born. Technology was introduced and everything moved online including entertainment, shopping, music, file storage, education, and more.
Now, with technology continuing to advance, we’re making a shift from the Information Age into the Digital Age (or Age of Artificial Intelligence).
Many argue crypto is a phase that will pass. Others believe cryptos are here to stay especially as the world makes this big transition. Regardless of what your opinion is, the fact is cryptos have proven to be a success in recent times if you know what you’re doing.
With trust breaking down in the fiat system, many are turning to cryptos as an alternative solution. Many well-known wealth experts such as Robert Kiyosaki, Porter Stansberry, and Eric Wade believe it’s here to stay and are personally investing large amounts of wealth into the market.
When you think of cryptos, most people only think Bitcoin, Dogecoin, Ethereum, etc. They only understand about the currencies.
What most people don’t realize about cryptos, is they’re more than a currency. Many are actual projects which can solve real life tangible problems. It’s just a matter of being able to pick the right ones.
To learn more about cryptos and how you can potentially generate an income from the market, Connor Marshall has recorded a bunch of videos for you which you can access on our free education centre.
3. Farm and Rural Land
“It’s an asset with increasing value”
– John Piotti, CEO of American Farmland Trust
Many of the elite are quietly acquiring farm and rural land because of the opportunities, benefits and constant changes in taxes, regulations and laws. We suspect this urge will only get stronger the more we see lockdowns increase, food shortages, and government crackdowns.
The need to go private and off the grid is becoming more evident especially for the minority who see the problem. Many are building their lives to be sovereign and self-sufficient.
As well as the need for farming, food and resources, rural land in modern times offers new benefits which cities don’t. Such as privacy, decentralization, livestock, and supply which are all key tools to withstand an economic collapse.
“You go buy a farm and you put that cash rental lease in place, you’re going to be looking at about 2.5% return on your capital.”
– Peoples Company President Steve Bruere
Two Interesting Facts to Consider:
- Bill Gates is the largest private farmland owner in the world and has acquired over 269,000 acres of farm in the United States the last 10 years
- Mark Zuckerberg added 110 more acres on his island in Hawaii in 2021
Other Notable Investments
- Stocks (in the right industries)
- Mutual Bonds
- Treasuries
- Essential Businesses
Where should I put my money in a recession?
The truth is no one knows what industry will succeed. That’s why the smartest thing to do is to diversify your wealth and investments, spread your risk, and focus on maintaining a balanced portfolio.
What’s the best investments for an economic collapse?
Most experts believe the smartest strategy is to acquire real, tangible assets such as gold, precious metals, shares in companies and rural land. However, you also want to make sure you have proper asset protection in place to ensure you keep these assets safe.
In Summary
The secret to find the best investment opportunities in an economic collapse, is to see a problem no one else sees, and then find an investment under its true market value which provides the solution.
However, the most important lesson we want to emphasize is you can never be too sure. We always teach our clients to spread their risk, balance their portfolio and never overleverage their wealth in one sector because they think it’ll be the answer.
An economic collapse can have many twists and turns. We can only use history as a guide. Generally what you expect to do well, will often do the opposite. So always practice risk management.
To learn more, book a FREE 30-minute Wealth Protection & Growth Assessment with our team to see how we can help and work together.
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Disclaimer: As we are NOT licensed financial advisors, on financial and investment matters, the information is provided for educational purposes only. It should not be relied upon as financial product advice. None of the information takes into account your personal objectives, financial situation or needs. You must make your own decision how to proceed. If you want financial product advice that takes account of your particular objectives, financial situation or needs, please seek financial advice from a licensed financial advisor before making any financial decision.