Hedging Your Future: The Art & Science Of Investing In A Troubled Economy

Wonder what will happen to the Rupee sitting in your bank account? Yeah, it will lose its value. It means that whatever you can buy from it today, you won’t be able to buy from it tomorrow. So, what should you do with your stash? “INVEST!!!”

Investing is an art and a science. Putting your money in a place where it returns the maximum value is a complex problem but there is a simple solution. Let’s discuss where you can put your money during these turbulent times.

When you see the news, you come to know that the Rupee is losing value. The country has dwindling foreign reserves and default is a real possibility. Everything around you is becoming expensive, from basic commodities to luxury items, from cars to random plastic toys you want to buy for your kid. The buck you have saved will not be enough in the future.

You buy stuff that can get appreciated right now and I mean RIGHT NOW or you will end up having less (and less) with each passing day. Buying stuff with intrinsic value is good but having an asset that can reel in more revenues now or soon is great. Following are some assets you can buy today.

1.  Buy Foreign Currency

Yeah, you wish. Buy Dollars, Dirhams, or Euros if available. Anything will work. But in the current foreign currency crunch, you won’t be able to buy a lot of it in the open market. DO NOT get carried away and use the grey channel. This kind of foreign currency will be counterproductive when things get better and you want to sell it.

2.  Buy Precious Metal(s) – Physical Gold

Once upon a time, the world’s biggest currencies were backed by gold reserves. Since olden times, precious metals were used to store wealth and hedge the future. Gold however has a multitude of factors one should look into before buying. Its international price fluctuates based on the value of the Dollar, Buying patterns of global powers, and its supply-side issues. Furthermore, gold is also very difficult to store and guard. Buy some here and there but do not heavily invest in it until you have a complete grasp on its trade in the global marketplace.

3.  Buy Agri Property or Farm Animals

Agricultural land is a good bet in a troubled economy. Agri property creates value in terms of commodities that come in handy in difficult times. If you can sell wheat, rice, vegetable, or oil-bearing seed in the market, you can earn profits while the value of the land appreciates consistently. The profit is only possible if you have some sort of knowledge about the agricultural sector. Beginners usually lose money as they are not fully aware of the dynamics of this multifactor sector. It takes years of experience to master agricultural management. BE CAREFUL, before you jump.

4.  Buy built or off-plan property

It’s a great win if you can invest in a built or off-plan property. Buy a house you can rent or make a down payment on an apartment/shop, or book a guaranteed rental property that will give you monthly revenue along with definite value appreciation. This type of property will have a multi-fold increase in its value. The cost of construction is going up exponentially, hence the price of the built property will go up no matter what. For instance, steel prices have escalated to all time high.  Cement prices are also peaking despite lower demand levels. Rentals or self-utility of the property will increase your wealth. While buying an off-plan property, put your trust in a well-reputed real estate company and a developer who has a track record of delivering projects.

During turbulent economic times, refrain from investing in stocks, marketplace commodities, crypto, or low-value non-utility real estate which cannot give you returns in the present or recent future. And do not let your currency eat itself up while sitting idle, giving you a fixed return in Rupee that is losing value.

Happy Investing!