Everyone wants to be their own boss. Obviously there are some who are very satisfied with their jobs, such as football players and the presenters of the car show ‘Top Gear’, but in reality most people dream of working for themselves. Investing in the financial markets is one way that individuals get to enjoy the freedom of self-employment, and the luxury of working from the comfort of their home or some coffee shop with a magnificent view. Even though it doesn’t guarantee returns and the element of risk is always present, there are various choices and asset classes for entering the financial markets where investors can apply their skills with a view to creating an income. However, each market comes with its own characteristics and there are some which, either because of their past performance or future potential, may be quite lucrative to a large number of investors.
One of the most traded commodities is gold. Investors enter the gold market mainly because of its stability as it is viewed as a safe haven investment. The shiny metal’s price usually increases in periods of economic uncertainty, and traders see this investment as a good way to hedge their portfolios against low U.S. dollar prices. Moreover, everyone knows about gold’s status as the highest regarded precious metal. It has been on the market for thousands of years, used for the production of jewelry and traded as a form of currency. Geopolitical tension between countries often result in increased demand pushing the price of an ounce of gold higher.
Silver investing also provides another route to entering the commodities markets. Global financial crisis pushes a lot of investors to search for alternative investments when stock indices slide. The silver market, sometimes referred to as ‘gold’s poor cousin’, is also a ‘safe haven investment’ attracting investors who wish to add stability to their portfolios. Just like gold, silver is also used in the production of jewelry. However, the manufacturing and electronics sectors are the main drivers of higher demand year after year.
Disappointed investors from falling prices of trendy stock markets often seek important world markets with long-term potential. The energy market is a very good one because chances are it will offer large gains in the coming years as the supply glut dissipates and turns into a supply crunch given the billions of dollars slashed in capital expenditures. Growing energy demand from Asia will not only ensure a market recovery from current levels, it will fuel a gradual increase in the medium and long term.
Trading foreign currency is one of the most popular markets where traders capitalize on short-term movements in a time frame that can easily be measured in minutes. Global economic shifts in confidence from one country to another can setup profitable trends as traders value one currency over another. The possibility of the UK leaving the European Union is striking example of how opportunity appears due to increasing market volatility in the pound and fear of the unknown if such a thing does happen.
The above assets are merely an introduction to the wide selection of global financial markets available for investing. Several sites make it easier on investors to plugin into this world. If you are truly looking at methods to becoming self-employed, investing in financial markets is one of them. But don’t forget that the amount of risk you undertake determines how much you can potentially make or lose on your investment.