Top 12 Must-Know Different Types of Investments
6. Gold
Gold is a precious metal and has been used as a store of value for centuries. Investors can buy physical gold, gold ETFs, or gold mining stocks. It is considered a safe-haven asset, especially during economic uncertainty.
Pros:
- Hedge against inflation and currency devaluation
- Safe-haven asset during economic downturns
- Tangible and globally recognized
- Long history of preserving value
Cons:
- No income generation (no dividends or interest)
- High storage and insurance costs for physical gold
- Price volatility based on global demand and supply
- Limited growth potential compared to other investments
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