Shares offer above-average return opportunities in the long term, but are the most vulnerable to crises. They do not react merely to the current situation, but also, and in particular, to expected future developments. They are a form of seismograph, that reacts right at the outset, as soon as economic prospects start to dim.
Bonds and fixed-income securities are not sensitive to short-term crises. However, the example of Argentina shows that any bond is only as secure as the capital strength of the issuer. This can change over the course of several years. In the event that an issuer were unable to pay out, the entire investment is threatened.
When it comes to shares, bonds and fixed-interest securities, there exists a further problem: they exist only in intangible form, as bits and bytes within computer systems, no different to Bitcoin or other cryptocurrencies. If critical electronic systems were to collapse, these investments would no longer exist.
Properties are considered safe harbour, with prices currently at their highest level ever. Some experts are already talking of a bubble. At first glance, a property may seem like an ideal investment in times of crisis, however what if a war or civil war were to break out, if your had to leave your house or were dispossessed? What if a natural catastrophe, climate change, or a nuclear accident such as those in Chernobyl or Fukushima were to make entire regions permanently uninhabitable? The risk of such an event is extremely negligible, but it is not zero.
Gold and precious metals are well suited for investment during times of crisis, at least in their physical form. At the same time, they have huge weight - carrying around assets in gold is practically impossible. A 250 g gold bar currently costs around €12,500, meaning that €50,000 in gold weighs an entire kilogram. Gold is unfortunately also increasingly prey to speculators, who gamble on price changes without actually owning physical gold.
Diamonds combine high value with a small footprint - a one-carat diamond has a weight of 0.2 grams. Even large values in the form of diamonds can be conveniently tucked away in an envelope, in your trouser pocket. They are the ideal safe-haven currency, and are in demand all over the world. Their value is not dependent on company profits, the ability of states to pay out, or the property market. They are only traded physically, there is no speculation. Diamonds have proven their resistance to crises
more than once.
Our suggestion for investing in diamonds