Some people try many ways to make more money. Some of them may trust their money in market neutral and some of them put their money in other instruments. These days, there is a wide range of option of money instruments, but not all of them are truly profitable. Therefore, to avoid any mistake in placing your money, you should know several instruments which are actually risky. There are a lot of instruments that are risky but we list you the top three risk instruments such as below.
1. Precious Metals
Many people think precious metals is the safest type of investment, however, according to financial planners there are some things that you should considers when investing in precious metals, such as, storage costs, insurance costs and lack of short-term gains. Besides, the recent news has reported that metals don’t increase substantially over months or years. In fact, in 2010, gold reached the same price it held in 1980.
Everybody knows that when a valuable thing gets older and older there will be an opportunity for it to be more valuable than before which causes many people think that collectibles things can be considered as an investment instrumental that is true unless it is precious enough until it can cover its storage costs, insurance, dealer markups and maintenance.
Just the same with less valuable collectibles, artwork comes with its own limitations. You have to secure it, you have to store it. So, it doesn’t have any guarantee that other rich people will love it when you want to sell it. Moreover, in general, investors are told to expect returns of about 8 percent a year, which is in line with expected returns form the stock market while art only produces 4 percent each year, far less other types of investments.