Many people talk about investing as an effective way to achieve financial stability and long-term financial goals, but what about short-term investments? Can they generate good profits and protect capital over a short period of time?
If you’re looking for short-term investments, these options may be interesting to you, such as stocks, digital currencies, cash instruments, bonds, and commodities. While short-term investments may be riskier than long-term investments, good profits can be achieved if the right decisions are made and good planning is in place.
Investing in Stocks and Bonds
Stocks: Stocks are considered one of the best short-term investments, relying on market analysis and choosing the right stocks. You can search for emerging companies in sectors you know well, which have rapid growth in value, such as technology companies or those working in healthcare or renewable energy. You can also look at companies that pay high dividends to shareholders, which can return good profits in the short term.
Bonds: Bonds are also one of the best short-term investments, used to finance projects and allow investors to get a good return in a short period of time. You can invest in corporate or government bonds that operate in different sectors, and get better returns than fixed deposit accounts or other banking accounts.
Short-Term Investment in Stocks, instrument, Exchange-Traded Funds, and Commodities
Instrument: instrument is one of the best short-term investments, used to finance projects, and allowing investors to obtain a good return in the short term. You can invest in corporate or government instrument operating in different sectors, and get better returns than fixed deposit accounts or other bank accounts.
Exchange-Traded Funds (ETFs): ETFs are considered one of the best short-term investments, allowing investors to purchase a share in a diversified investment fund, and benefit from market growth without needing to choose individual stocks. Investors can enter a large number of stocks at low prices easily and efficiently, with good financial returns.
Commodities: Commodities are one of the most common types of short-term investments. Basic commodities include materials that the economy needs for work and development, such as oil, gas, minerals, and agriculture.
Investing in Metals and Oil
Basic commodities can be purchased through trading exchanges, and their prices are constantly changing due to fluctuations in supply and demand. Some well-known examples of basic commodities include:
1– Oil: Oil is one of the most famous and heavily traded basic commodities in the world, and it is traded on trading exchanges around the world. From 2016 to 2020, the price of crude oil ranged from $35 to $85 per barrel, and the price was affected by factors such as production, supply and demand, and politics.
2- Metals: Metals include gold, silver, platinum, copper, iron, aluminum, and zinc. Gold and silver are among the most popular types of metals for investment, with gold being one of the most precious and popular metals for both short-term and long-term investment. This is because gold is considered a safe haven for investors during periods of economic weakness and high inflation, as it is a safe haven that protects capital from deterioration.
Gold has unique characteristics that make it a good investment during difficult times. It is stable and maintains its value, and serves as a means of protecting wealth from high inflation and the real value decline of currencies. Gold also has high liquidity, as it can be bought and sold easily at any time and in any place in the world. For example, gold prices increased by an annual rate ranging from 5% to 17% from 2016 to 2020.
Silver is one of the most important commodities traded in global markets, and is widely used in industry, electronics, jewelry, medical tools, and more. In addition, silver is also considered a means of investment and achieving profits.
Silver prices experience significant fluctuations, making it an attractive option for investors seeking short-term investments. However, despite silver being a potentially interesting choice for short-term investments, investors should be aware of potential risks such as large price fluctuations and global economic, political, and geopolitical factors that may impact the price of silver. In 2020, the price of silver rose by more than 47%, as the global health crisis – COVID-19 – hit the world, causing market turbulence and an increase in many commodities.
