What are the best investments in 2021? | BNT Diamonds
Best investments to make in 2021

What are the best investments to make in 2021?

14 Jul 21
  • What can you invest in?
  • What are the best investment opportunities in 2021?
  • Investing in times of crisis

Nowadays, there are many ways of putting your savings to work. Investing is therefore on the rise and it is also popular among the younger generation. The investment landscape is subject to change due to emerging trends, politics and the economy which influence it every year. In this article, we take a quick look at the future trends to determine the best investments to make in 2021.

View the investment opportunities available from BNT Diamonds

What can you invest in?

With savings accounts giving near-zero returns, and inflation eroding the purchasing power of your savings over time, more and more people are turning towards investing. The range of investment products is diverse. Below you can find some examples of the most popular investments:

  • Shares - investing in corporate shares is perhaps the best-known form of investing and remains a popular choice. When you buy shares in a company, you become one of the financial owners of that company. Then, you are entitled to a share of the profits, usually distributed each year in the form of a dividend. Shares in listed companies are traded on a stock exchange.
  • Investment funds - the investment capital of various individuals is combined together and invested by the fund manager. Depending on the type of fund, the capital is split between shares, bonds, cash and other assets. The advantage for you as an investor is that you can invest in a diversified portfolio, even with limited investment capital, and the fund gets you access to investments that are only accessible to professional investors.
  • Forex - Forex stands for "Foreign Exchange Market" and is the largest trading market in the world. With this type of investment, you buy one specific currency using another currency. The return then depends on the exchange rate. Transactions are entirely electronic and happen 24 hours a day. Anyone investing in foreign currency should remember that the market fluctuates, and exchange rates can be difficult to predict.
  • Property - an interesting alternative to investing in shares or mutual funds is investing in property. Investing in property is a fairly steady investment because a roof over one's head is simply a basic need. In this respect, property is also a good option for safe investment. Investing in property requires a large amount of capital and only shows a return in the long term.
  • Commodities - investing in commodities has built up a solid reputation over time as a safe haven in times of crisis and troubled economic climates. Commodities such as silver and gold, but certainly also diamonds and other rare gemstones, are items which keep their value. Natural resources are finite, and this is reflected in limited supply and increasing demand. Above all, scarce commodities such as gemstones clearly show this trend.
11952 shutterstock 627731396 2000x430

What are the best investment opportunities in 2021?

For anyone wanting to start investing in 2021, you should consider, on the one hand, the current economic climate and on the other, the emerging trends which are gradually transforming the investment landscape.

One such trend is sustainable and ethical investing. Sustainable investing can best be described as an investment that considers people and the environment. Some investors take things a step further and deliberately choose to invest only with a truly positive impact on society and the climate. A recent article in De Tijd suggested that young investors in particular focus heavily on green investments. Figures show that as many as 95% of millennials are interested in sustainable investments, and 67% of them are already investing in at least one sustainable investment.

What are the best investments to make in 2021? This is different for everyone. The choice depends on your investor profile and the risks you are prepared to take. Regardless of the current investment landscape and your own investor profile, a well-diversified portfolio is always important. It is essential to maintain balance by spreading your investments to hedge your bets, especially in a troubled financial climate. Investing in scarce commodities, such as diamonds and other gemstones, is, therefore, a sensible and resilient choice in times of crisis to complement your investment portfolio. The value of these scarce items always shows a tendency to continue to increase in the longer term.


Investing in times of crisis

The stock market crash in the wake of the coronavirus pandemic attracted millions of young investors worldwide. Young investors in particular entered the investing world for the first time. On one hand, this trend can be explained by the extremely low interest rates caused by the troubled economic climate and alternative options have been explored to generate returns. On the other hand, the younger generation sees crisis situations as an ideal moment to start investing, as shown by a survey of 1,000 Belgians by Keytrade Bank.

Another important aspect making investing attractive in times of crisis is the recovery trend that follows an economic crisis. Analysts are predicting recovery of 39% in 2021, according to a recent article in De Standaard. Such a recovery trend is usually also noticeable in rising market reactions. Experts are, therefore, predicting the biggest recovery in profits for companies with the biggest losses in 2020. Investing in times of financial crisis is therefore certainly an option worth considering.

Are you interested in making your savings yield returns, by investing in diamonds in 2021? The experts at BNT Diamonds are happy to help you with expertise and objective advice. Get in touch by email or on webchat or speak directly to our team on +32 3 201 24 90.

With this article, BNT Diamonds strives to inform you thoroughly about investing in diamonds. No investment can be guaranteed to be without risk or fully according to your expectations. That is why we recommend to research the risks and aspects of investing in diamond properly to ensure that you make the right choice for your portfolio.