What are the best investments during an economic depression?
November 12th, 2008 | by admin |MoMo asked:
Not to be all doom and gloom, but in my opinion, the writing is on the wall regarding the economy, the real estate and financial markets, and I am extremely worried about the future. So what are the best investments during serious recessions or even depressions or hyperinflation? I’m not simply talking about securing/holding onto current value, but to take advantage of the situation.
Not to be all doom and gloom, but in my opinion, the writing is on the wall regarding the economy, the real estate and financial markets, and I am extremely worried about the future. So what are the best investments during serious recessions or even depressions or hyperinflation? I’m not simply talking about securing/holding onto current value, but to take advantage of the situation.
I.e., what were the best investments during the Great Depression? Gold? Other precious metals/natural resources?
5 Responses to “What are the best investments during an economic depression?”
By lizardmama on Nov 16, 2008 | Reply
According to Mary Kay Ash, makeup sales went up in the Depression due to an increase in prostitution.
I think gold would be a safe assett.
By Cdn_Superdave on Nov 16, 2008 | Reply
The best Investments in a depression are much different to ones in hyperinflation. A correction in Real Estate or Financial Markets will hardly equal a world depression.
But to answer your question basically for Depression you want high quality guaranteed government long term bonds and for hyperinflation you would turn to precious metals
By MiddleAgeVet on Nov 17, 2008 | Reply
When things seem the worst, that is the best time for investing. They are not making any more land (except in Hawaii), so investing in real estate is a good thing, as long as you can pay the taxes while you are waiting for things to recover.
People that invested in the orange groves around Los Angles in The Great Depression became very rich in the years that followed.
By jaber10m on Nov 20, 2008 | Reply
any decision is not a rule .but the only exception to this rule that I can think of . in foreign investment . its the best business .i meant out of the country
By Charles V on Nov 22, 2008 | Reply
Gold is the standard hedge against inflation, and down markets usually happen at the same time. The reality is that gold itself never truly changes in value, it is the constant… all other currency or specie changes value around the constant of gold.
Best example I can give is this: One ounce of gold will buy a man a good suite of clothes. This does not mean the finest clothing there is, but what is considered good. This valuation has held true for centuries.