Sometimes it seems that people who accumulate wealth know financial secrets that the rest of us don’t have access to. The wealthy anticipate future price movements by investing in assets that might be under-appreciated today, but will be valuable tomorrow because they are necessary for providing an essential product or service to the people. Real money-making has a time parameter to it. Successful investors look for the “diamond in the rough.” Here are 5 long-term investments that will really pay off.
1. Agricultural Land
No matter the age, race, society, or nation – people need food to eat in order to survive. The world population continues to expand every day and food prices seem constantly subject to inflation, and yet farm land prices are currently at record lows. Some investors understandably fear the power of corporate farms, but smaller farmers recognize the growing popularity of organic foods. This organic niche could deliver good profits to the enterprising businessman who recognized the opportunity.
2. Certain Real Estate
Typically, real estate follows a boom-bust cycle. Property increases in value as homeowners and businesses see rising opportunities for making money and invest in the potentially valuable property. As productivity shifts, new areas of manufacturing will develop to generate their own land booms. The luxury property market continues to see record prices due to intense competition for lucrative locations, but watching for civic growth trends in cities near you can be equally profitable. Many people have made their fortunes on flipping houses or buying and renting residential or commercial properties
3. Developing Nations
Capital regularly tends to flow to areas with cheap wages and undeveloped natural resources. As many fully industrialized nations see stagnant growth or declines in their overall productivity, many of the wealthy investors are turning to developing places with more potential upside. Developing countries with a solid legal and financial infrastructure enable hard-working indigenous people to benefit by providing jobs and wages while increasing the profits of the outsourcing companies dramatically.
4. Investment Grade Debt
Listen carefully to the news and you will hear what the world is focused on: Debt. Under the law, the creditor is able to lend money to a debtor whose assets are the collateral. If the debtor repays, the creditor receives interest. If the debtor defaults, the creditor receives real assets. Generally, investment grade debt is a wise way to make money. Most governments and large multinational corporations have plenty of valuable assets to compensate their lenders if they run into bad financial straits. The wise investor might want to avoid junk grade debt.
5. Gold, Silver and Other Precious Metals
Look around you at the things that play a major role in your life. Your cell phone, laptop or automobile are all things that you use every day. All of them need regular metals and precious metals in order to function properly. Gold and silver are used as currency when other forms of money collapse, and also for jewelry and in many electronics. The up and coming technology of solar energy requires the most efficient precious metals to conduct the electricity it generates. The world always needs precious metals; a good investor purchases these precious metals when they are affordable.
One of the best possible pieces of advice is to talk to successful people about where they have had the best results. Networking and getting the best financial investing tips is a time tested way to put your money in the most productive places while avoiding some of the possible pitfalls that can come as a result of inexperience.