Saving Safely: 5 Most Stable Investments for Your Money

If the recent economy has taught us anything, it is that the economy is unstable. With unprecedented drops in oil as well as the recent housing crash, Americans may find themselves hoarding their pennies in a shoebox. As “safe” as that seems, it is not the ideal investment to protect yourself from inflation.

Investment Medium

Before you decide to pull all of your money out of the banks and become a hermit, consider a few of these safer investments. The returns may not be as great as in real estate or the stock market, but you do not run the risk of losing your money.

Precious Metals

The financial foundation of any anti-government prepper is likely found in precious metals. Fortunately, you don’t have to believe the Apocalypse is inevitable to agree that metals have a stable investment potential. While the wealthy may continue to buy gold bars, those who want to accumulate wealth now may look to silver investments.

The technology industry has grown indispensably dependent on silver. How does that benefit investors? Simply put, there is an incredible shortage of silver on a global scale. Silver mines are unable to produce a high enough amount to support the demand, and the global stockpiles are running low.

Additionally, the price of silver has been artificially suppressed for many years, meaning an increase in value is on the horizon. Silver prices are still incredibly low, around $15.88 per ounce, meaning you can easily begin to invest in this field for a relatively low amount. Because silver is a precious metal, it will hold value even in a prepper-predicted situation like economic collapse.

As for the people who may not have an interest in common metals, they can look for platinum and palladium investment options. Both metals come under precious metals and have diverse uses such as in jewelry, the automobile industry, and investment. You can also look for platinum versus palladium comparison blogs to study investing in which metal may benefit you more.

Savings Accounts

For those who are not looking to begin hoarding precious metals, putting your money in savings can be a wise decision. Before depositing your money, be sure the interest rate is high enough to keep up with inflation. If it is not as high as you want it to be, only deposit a small amount of your wealth here. Money placed in the bank is always withdrawable and should be FDIC insured.

Certificates of Deposit

CDs are a form of savings account but without instantly accessible funds. When you deposit your money in a CD, you are agreeing to leave it in the bank for a set amount of time. In exchange for your deposit, the bank will pay you a higher interest rate.

Many people enjoy building a “CD ladder” as a part of their investment portfolio. Typically, you will deposit CDs with a variety of maturity dates, 1-year, 3-year, 7-year, 10-year, and so on. Each year as a CD comes to maturation, you will have the option of withdrawing the money or rolling it into another CD. This allows you to take advantage of compounding interest rates in a completely secure structure.

Treasury Bonds

One of the lesser known investment options, a treasury bond acts as an incredibly long CD deposit. Treasury bonds have a maturity lifespan of 30 years, with interest being deposited every six months. The benefit of treasury bonds is that they have a much higher interest rate for being such a stable investment, as much as 5% over 30 years!

Treasury Bills

While the name is similar, treasury bills are quite different from bonds. Imagine you are bidding on a $100 bill. You are willing to pay any amount for it that is less than $100. If you win the bid at $95 you have just earned a 5% interest on that 100 dollar bill.

Treasury bills are secured using this type of auction process and typically mature within one year; treasury bills mature within 4-weeks, 13-weeks, 26-weeks or 52-weeks. This bill will then be eligible for cash out and you will gain your interest. Treasury bills are a great option if you want short term fund security.