Monday 12 November 2012

Reasons to Invest in Hard Assets Like Investing in Diamonds


There are a lot of good reasons for private investors to invest in hard assets, especially in times of economic uncertainty. Hard assets can offer benefits that traditional investments cannot. For an investor who has a traditional portfolio filled with stocks and bonds, the addition of hard asset investments, can help to diversity an otherwise risky investment portfolio.

With hard asset investments there is also the opportunity for very competitive investment returns, when compared to traditional investing strategies; like stocks and bonds. As well, investing in hard assets has demonstrated that it can protect investments against inflation and economic uncertainty. For example, in the United States a certified deposit pays a rate of 2 percent interest, per year. This is far from the rate of inflation.

If included in the alternative investment portion of an investment portfolio, an investing strategy that includes hard assets, will dramatically improve an investor's risk-reward profile. And luckily for investors, there are many different approaches, which will allow them to invest in profitable hard assets. For example, there are many great reasons to invest in diamonds, other precious gemstones, certified coins; as well as gold, silver, platinum, and other rare metals.

1 comment:

  1. This note examines the investment performance of diamonds and ... this article in press as: Renneboog, L., Spaenjers, C. Hard assets: The returns on rare diamonds and ... ity of white diamonds has been similar to that of government bonds. learn more 

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