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Cash and Commodities

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Investing in Cash, Cash Equivalents and Commodities

Cash is the most common form of investment and is typically our first investment (as children) and our last (as retirees)!

Essentially you put money in a bank account, and the bank pays you interest. This is low risk, but low return and is therefore ideal if you just want to preserve what money you have and don’t want to take much investment risk.

Talk to your bank about options – long terms deposits can give you a better interest rate, but will have restrictions on access to your money and maybe even minimum deposits.

Cash equivalents are safe, short-term, highly liquid investments that are equivalents to cash (as the name suggests).

Cash equivalents are excellent savings options for short-term goals and can take the form of a Certificate of Deposit which provides an amount of interest for a period of time (much like a term deposit in the bank); or a Money Market Fund which is essentially a short-term mutual fund.

Foreign Exchange
or FOREX is a variation to investing in cash is exchanging foreign currencies whereby you buy and sell foreign currencies to take advantage of the daily fluctuation in exchange rates.

This is a high risk but potentially high return method of investing and only recommended if you have a HIGH risk tolerance! If you are interested in trading the FOREX, then check out this Forex Robot Comparison.

You can also invest in Commodities such as Gold bullion. Gold is a limited resource, hence its value is always maintained and is not subject the fluctuations of the foreign exchange rate. Gold is a good long-term, low risk (and low return) investment.
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We are not certified financial planners or advisors. The information in this website is general information only. Always consult a licensed financial planner before making any finance or investment decision.

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