How do you invest your money in times of war and crises?
Education flourishes, universities open, and investments usually increase in times of peace and stability, and industries increase and cities expand with markets, buildings, and hospitals at this time as well. The opposite happens in times of wars and crises that seem to be a turning point in life, as hardly a few years pass without hearing about a war or crisis that begins here or there, in one way or another.
In wars, the answer, in most cases, becomes clear and explicit to the question of money and self, which is to flee, where the best investment for money in wartime is for you and your money to flee outside the country, sell what you can sell, get rid of the local currency, withdraw your money as much as you can from the banks and take what is left In one hand and in your other hand, you perish and come out, potentially irreversible.
Such an answer is economically correct in a place, but the question is: Is there an opportunity or possibility for those who have decided to stay in investing their money at home in time of war?
1. Get rid of cash
The worst thing you can have in a time of crisis after risky investments is cash, and the worst of it is cash in banks. Withdrawing money is certainly selfish and harmful behavior from the state's point of view, and its negative impact will be multiplied by the number of practitioners who practice it.
The first economic reaction that occurs before a crisis occurs in a country is the withdrawal of capital, we are not talking about the thousands that you have in your account, but we are talking about the billions owned by investors who move first and move quickly to save their money from the country by withdrawing it from their balances or converting it into foreign currency, which It generates the beginnings of the collapse of the value of the currency, which occurs in a sequential cycle (chain effect) that the state stops at some point by preventing or placing restrictions on the withdrawal and transfer of funds, as well as the purchase of foreign currencies.
If your luck is good, you will get rid of the local currency as much as you can, and if you don't realize it, the first lesson and rule in your wartime investment plan is not to keep cash in your pocket.
2. The traditional solution: buy gold
In its simplicity, it is indeed one of the most correct solutions in times of economic crises and wars, but why is gold considered an ideal solution?
Gold, like all precious metals that can be purchased such as silver, diamonds and jewelry in general, is considered an economic tool against crises and economic fluctuations, and its global value represents a material safety barrier for those who own it during wartime, and in many cases it is considered the best investment after the end of the crisis.
The main problem with gold solutions (and other alternatives) is the possibility of securing it, hiding it or transferring it. Safety considerations in a country ignited by war reach its lowest levels, and the chances of theft, looting and damage to property rise.
3. Owning the assets
It is one aspect of investment that you should exercise with caution. Assets are distinguished by their original value over time, so they are originally considered a safe investment that is not affected by the deteriorating economic situation in the country.
Of course, one of the best options in this case is to buy vacant land licensed for construction, then agricultural land, and finally buildings.
The risks of such investment come first on the buildings, which are subject to demolition under fire and bombardment, secondly, the possibility of theft of crops or the exposure of the land to vandalism and burning as well if they fall within the circle of clashes, and the last risk is in the chance of losing property rights completely and the state’s acquisition or nationalization of private property.
Therefore, your direction for such a long-term investment should be based on a suitable choice that takes advantage of the dramatic decline in land prices and avoids the risks of property damage and loss.
Some non-traditional alternatives, such as the purchase of livestock, cars, commercial licenses, and property rights, may also be included in the asset classification.
4. Trade of raw materials
But if you find yourself compelled to find a business solution that can provide your family with a basic monthly income, then you must trade in basic and raw materials.
Of course, the first reaction to the situation of war is the relinquishment of individuals for their secondary needs, the cessation of service activities and the collapse of the trade of luxuries and luxuries under the pressure of lack of cash and low rates of consumption; The safest trade is in food, fuel, and daily necessities.
We use here the original rule (not keeping cash) as a main strategy in the buying and selling practitioner, so do not sell on credit and try to reduce storage periods.
The risks of inflation and currency collapse will be with you all the time as long as you keep the trading money in your hands. The buying and selling cycles should be as short as possible as people are consuming less than usual and commodity prices are always one step ahead of you; Open three small stores better than one big one, buy the day you sell out and don't wait for tomorrow.
5. Is the stock market a solution?
In principle, yes, there is scope for safe investing in stock exchange stocks and bonds; Resorting to the shares of local private companies is certainly suicidal and debilitating for an owner, but choosing shares of state joint stock banks or raw material suppliers can be a better investment.
The purchase of government bonds is the safest choice ever in the stock market, but it is also the least profitable, as governments are the most trusted party in the financial market, and the investor guarantees the recovery of the bond's value even with the deterioration of the economy; Certainly this is a general principle, if we are talking about a stock exchange that is already active and a country that has a balance of confidence.
6. Invest in people!
This is the last outlet, which should not be ignored as an available economic solution.
To invest in educating your children by buying a means or an educational lesson for a new language, skill or craft for them, or securing an opportunity to travel abroad, or health spending on them, or even lending to trustworthy individuals who guarantee that they will return the loan to you in its original value when you need it.
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