Inflation has probably forced many to think about where to invest their savings in order to save them from “melting” in the straw and even make them grow.
Analysts tell those who want to make money overnight to prepare for a huge risk, that investing in cryptocurrencies or futures on the stock market requires serious knowledge, and that real estate is a profitable option for those with more capital. For most average savers, keeping money in banks brings modest returns. Investment gold and silver has proven to be a safe keeper of value and serious earnings for the patient.
Interest rates on savings in banks, after successive increases, started to fall again, so they would for someone who invested 100,000 dinars, after a year of earnings of 4,850 dinars was insignificant considering the rate of inflation that would “eat” fertilization.
Despite this, the National Bank of Serbia says that dinar savings have grown almost tenfold in the last 12 years. The reason is probably that it is the simplest for most savers and they do not want to take risks.
– This year alone, savings increased by 37 billion dinars, or 26.8 percent, reaching a level of around 175 billion dinars at the end of October. Foreign currency savings also grew, albeit at a slightly slower rate than in dinars – they increased by almost 90%, from 7.9 billion euros (September 2012) to 15.1 billion euros this September. – say the NBS.
Georgi Hristov from “Tavex zlato i srebro Srbija” believes that investing is a marathon, not a sprint. In his opinion, the best recommendation for smart personal finance is a diversified portfolio. He underlines that anyone who has invested in the purchase of investment gold in the last half century, two decades, or even a year, has not made a mistake.
– In the past 50 years, the price of gold has jumped by more than incredible 6500%. Similar growth was achieved by the American stock market in the same period, but the key difference is that gold grew relatively stably with a long-term upward trajectory, while the stock market had several periods of decline and crisis. – says Hristov.
So, if someone invested $1,000 in gold in the 1970s, he would have $66,000 today.
-If we look at the growth of the price of gold in the past year, we see that the market has never been stronger, and the demand is at its peak. In just one year, the price of gold has increased by about 40%. And the price of silver achieved incredible growth. Last year in November, the ounce was around 22 dollars, while now it is almost 33 dollars per ounce, which is an increase of almost 50 percent – says Georgi Hristov.
How much money – such an investment
Our interlocutor indicates that the amount of money or initial capital that an individual has is an important factor in determining an adequate investment.
Appraiser Milić Đoković from Real Estate Cluster believes that most people in Serbia, and also in the Balkans, like investing in real estate the most. What disturbs the plans of many savers is that investing in real estate requires a large initial capitaland if someone were to take out a loan, they would currently have to face still high interest rates for the dinar and the euro.
-Minimum investments when it comes to real estate are about 15,000 euros, and garages are currently very popular, which have proven to be an excellent way to fertilize money. The prices of garages are on average up to 40,000 euros. With a monthly rent of 150 to 200 euros for a garage that was purchased for 25,000 euros, the return of funds can be expected in 12 years. – says Đoković and adds that in recent years, buying land as an investment has become increasingly popular.
In Barajevo, Rušnje, Slanci, Ovča, Sremčica, an acre is from 1,000 to 2,000 euros, and in Surčin and Altina it is 5,000 euros.
– A decade ago it was ten times cheaper. That’s why even now we need to think long-term, and whoever wants to leave capital to their children and grandchildren, and can invest, should buy land. In contrast to residential square meters, which in recent decades have been associated exclusively with the capital, buying land is profitable throughout Serbia – explains Djokovic.
On the other hand, as Christ says, investment gold it does not require a lot of capital and is much more affordable as an investment.
– Anyone can start saving, that is, investing, if they have about 11,000 dinars, which is the cost of a gram, up to a kilogram of gold bullion, which costs about 89,000 dollars. This makes it an affordable investment for all budgets and all households. Because, of course, when the price of gold rises on the stock market percentageally, everyone makes the same profit proportional to the initial investment – explains Hristov.
Increasing savings in gold
If gold was not good, the central banks of many countries, including Serbia, would not have rapidly increased their reserves. From the practice of Tavex, in the last year, a strong growth can be observed interest in gold. In this way, Serbia also joins the current global trend of increased demand for investment gold.
-Investors with larger sums buy larger products and less often, while individuals with smaller budgets buy smaller quantities, but more often. As for the popularity of the product, the Franc Jozef ducat is definitely the most popular product in Serbia, it is widely known and is the first association for most people when they hear about investment gold. In addition, gold bars in different weights from Swiss manufacturers such as Argor-Heraeus, Valcambi and PAMP are also in high demand – explains Hristov and underlines that recommendation to buy gold every month, especially for new investors, in order to develop the discipline of investing. He notes that there are promotional packages for investing in one gram of gold per month.
As he says, the profitability of such savings is shown by statistics, because the price of gold in 2014 was around 1,200 dollars per ounce, while today it is 2,700 dollars, which means that someone would have more than doubled his earnings if he had invested then. 20 years ago, the price of gold was around 500 dollars per ounce, which means that it has jumped fivefold to date.
– Silver also achieved very positive results on the market in the past year, the price jumped by almost 50% with large fluctuations. Silver is used both as an investment and in industrial production. Silver is a key element for the “green revolution” because it is used in the production of electronics, windmills and many other key products. This precious metal thus has a positive correlation with industrial production, the more it is produced, the higher the price. This makes silver more volatile than gold, with more spikes and drops in price, but it also means potentially higher earnings with higher risk, and investment silver is several times cheaper than gold. – concludes Hristov.
Photo: pixabay
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