During the webinar I hosted featuring Malaysia No.1 financial author Azizi Ali about his new book – Money Changes Everything, a live audience named Anuar Yahya asked this very good question “Based on the world economic situation nowadays, what type of investment should we choose?”
Here is what Azizi Ali said:
I have covered this in my books, “Get into Gold” and “Money Changes Everything.” I think that the future challenges will be very different from the challenges that we have ever faced before. This may include, for example, the collapse of the financial system as we know it. There will be some massive turbulence. If, for instance, the derivatives, options, futures, and all that ever explode, there would be massive consequences for the whole world.
You and I can’t stop this. We’re just pawns here. What we can do is take some steps to protect ourselves a little bit in case of this fallout.
One of the things we can do is invest in gold, and silver, and properties. Why gold? Why silver? Why properties? Because these things tend to hold their value during periods of uncertainty.
That is just one answer. However, it is not enough to say, “Oh, invest in gold,” or “Invest in silver” or “Invest in properties”. Are properties a good investment? Yes. However, this does not mean you can buy just any property you see. You can’t just pick and choose and buy.
Same thing applies with gold and silver. Of course, they are very good investments. I invest in a lot of gold. Well, mine are not for sale, but there are also a lot of gold products out there. If you choose incorrectly you , you may be buying gold, but you could actually be losing money even when the price of gold is rising.
The best example is those who invested in Genneva. They invested in gold, thinking they are investing in gold. Of course what happened was they fell for a scam. Now, instead of making money, they’re losing money and they’re losing everything.
In fact, last night, I was talking with one of my clients. He was telling me that one of his friends actually sold his house and invested everything in Genneva. I don’t know how much money, but probably, I’m sure it would be, at least a million Ringgit we’re talking about here. When you sell a house, all that is up in smoke!
So, the short answer? Gold, silver, properties. However, the real answer is you must realize that there are so many different type of gold and so many products out there. The same thing applies to silver and properties.
I must also add that we believe that there may be fallout. We believe that there will be massive challenges in the future. The keyword is “may.” It “may” happen or it “may” not happen. But, by the looks of things, the signs, and all that, it appears very strongly that it will happen. Just like when you look from a distance and you can see the sky, a very dark sky with lightning. Boom! Pow! You know then that the chances of a storm or rain are very high. So we prepare ourselves because of these signs.
However, to add to the confusion you must also prepare what happens in case it didn’t happen. Just in case what’s happening now continues for a long time. These can create a little bit of issue. You have to prepare for both fallout and in case the current situation remains.
Based on my research, my readings, I strongly think all these problems will happen. So I prepare myself accordingly. At the same time, I also prepare myself in case it doesn’t happen. That’s why I don’t invest everything in gold because gold doens’t produce income. In case I put, say, 70-80% of my investment in gold, what would happen if all of the problems didn’t happen? Then I’m stuck with all the gold but there’s no income, and in the meantime, I need to feed my family.
These are the interesting challenges.
So, from my understanding it’s that you should have an investment portfolio that is capable to facing both types of situations: whether the recession will come or whether the recession will not come in the near term.
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