Invest your money wisely in gold or real estate

Invest your money wisely in gold or real estate

 

How to protect your money and invest wisely: gold or real estate?

Between Trump's tariff crisis and the volatility of global politics, the global economy finds itself on the brink of a new crisis, but this time, it's more complex than ever.

A fierce trade war, a liquidity crunch, soaring inflation, global debt exceeding $320 trillion, and investments that can be shaken in seconds by a single tweet from the White House occupant... In this chaotic landscape, the most important question remains: What should individuals and investors do today?

Experts agree on the need to arm themselves with three pillars: liquidity, real estate, and gold:

Maintaining liquidity equivalent to six months of expenses * provides a safety net in times of crisis.

Buying real estate provides stability.*

Gold has reclaimed its position as a safe haven, supported by* unprecedented global demand and expectations of reaching $3,700 per ounce by the end of this year.

But even gold is advised to be handled wisely; Through* regular, small-scale purchases, not all at once. With declining confidence in the global financial system and the dominance of the dollar, it may be time to rebuild investment portfolios rationally and resiliently.

How did we arrive at this complex situation?

Many analyses attribute these concerns to the policies adopted by US President Donald Trump, most notably the tariffs he imposed on numerous countries around the world. These measures have provoked mixed reactions, most notably from China, which has demonstrated a more stringent stance in its recent dealings with the United States and exposed what it sees as transgressions.

This "economic cold war," which includes a trade war and a currency war, comes at a time when the global economy is already facing significant challenges. The repercussions of the COVID-19 pandemic are still looming, in addition to the ongoing effects of the Russian-Ukrainian war. Added to this is the massive global debt, which has exceeded $320 trillion, a ticking time bomb, as well as rising prices, job losses, and a liquidity squeeze in some sectors.

What should you do in these circumstances?

Economists today offer a near-unanimous consensus on some basic advice for individuals facing these potential challenges:

Stay liquid: "Cash is king," as the saying goes. Having a cash reserve provides flexibility and security in times of uncertainty.

Own real estate: A home provides stability regardless of economic conditions.

Keep your job: In times of crisis, job stability becomes a top priority.

Look for additional sources of income: If you have a small business idea that doesn't require a large investment and can provide additional income, this is a huge advantage.

Are we really facing a global economic crisis?

Dr. Ryan Lemand, Co-Founder and CEO of New Vision Wealth Management, answers this question in an interview with Sky News Arabia's "Business with Lobna."

Dr. Lemand believes the world has been in a political impasse for a long time, pointing to escalating tensions in various regions such as Taiwan and China, the Russia-Ukraine crisis, Middle East issues, and the trade war sparked by the United States.

He explains that this political tension is bound to lead to economic tension. He points out that the current situation appears stable on the surface as long as the United States is able to borrow without limits. However, the problem begins when lenders, as is the case today with the United States, begin to question their ability to manage their debts and improve their economic situation. We are beginning to see a gradual decline in the dollar's status as the global reserve currency, a process that could take decades.

The US Economy: Crisis or Challenges?

Lemand believes that describing the current US economic situation as a "crisis" may be an exaggeration. He points out that resolving chronic geopolitical problems will not happen overnight, and even a trade agreement between China and the US seems unlikely given the intransigence of both sides, especially China. This is partly due to the Asian Chinese culture, which values ​​pride and dignity and rejects any provocation or inappropriate language in international dealings.

The co-founder and CEO of New Vision Wealth Management adds that President Trump, by adopting a victim-centered stance and complaining that the United States is being robbed on trade, has not taken the right path to building strong trade partnerships.

The truth, as Dr. Lemand explains, is that the United States has benefited greatly from the modern global financial system over the past 20 years, as the dollars it pays for imports ultimately return to the United States through investments in U.S. assets and Treasury bonds.

Investing in Gold as a Safe Haven

Amid this economic uncertainty, gold is experiencing significant demand as a safe haven. Global gold purchases during the first three months of this year reached levels not seen since 2016, and a significant portion of this demand was for investment purposes.

Major investment banks such as Goldman Sachs predict that gold is the ideal hedge against any coming economic recession, and its price could exceed $3,700 by the end of this year. While others, such as State Street, believe that a restructuring of the global economy could push gold prices to between $4,000 and $5,000 in the next few years.

In this regard, Dr. Lemand advises large investors to view the current decline in gold prices as a buying opportunity. For small and individual investors, he recommends monthly purchases in fixed amounts as part of a long-term savings plan, and allocating a certain percentage of their salary to investing in gold, for example, at least 20 percent.

Regarding his personal experience with investing, he notes that his personal investment portfolio, with a long-term horizon (15 years), includes 50 percent gold stored in safe deposit boxes in Swiss banks. As with the diversity of cash categories, he also recommends diversifying gold savings patterns, including gold bars, coins, and more.

Youth and Facing Economic Challenges

In the same context, he offers valuable advice to young people: The first installment of their savings should be directed towards purchasing a house or apartment, not towards purchasing a car, as many do. The residential property should be allocated first, followed by the car, and then consider a second real estate investment to rent out and provide additional income.

He also emphasizes the importance of regular savings, allocating a fixed percentage of one's salary to savings first (no less than 20 percent), then managing the remainder according to available resources. He emphasizes the need to follow the principle of "stretching your legs as wide as you can."

The co-founder and CEO of New Vision Wealth Management concludes his talk with an inspiring message for young people, emphasizing: Life is full of tests, and difficult experiences are what refine character and make us stronger. A person who is facing financial difficulties or unemployment is going through a test, and he must strive hard to overcome it and not stand by and watch.