It’s reasonable for you to want to secure your money and choose the greatest investing alternatives with caution. Despite the crisis, you might wonder if there are any investment possibilities in South Africa that you can take advantage of.
Here are some potential investment opportunities to consider:
Stock Markets
Covid-19 has wreaked havoc on financial markets all around the world, including in South Africa. Last March, the JSE took a knock, losing as much as 20,000 points from its previous high of 57,000. Investors have the rare opportunity to trade with the best, thanks to eToro South Africa, arguably one of the leading online trading platforms.
Major corporations including Nedbank, FirstRand, and Woolworths saw their stock prices plummet to new lows. Other businesses are feeling the same way and are feeling the impacts of a gloomy market.
Many stocks are now cheaper than they were previously, making it one of the most profitable investment possibilities in South Africa for bargain hunters. This is a once-in-a-decade opportunity for many individuals like you to buy shares in major, well-established businesses at bargain prices.
Investing in stocks has a very appealing risk-return ratio right now, especially for speculators. Finance, for example, is one of the industries predicted to rebound fast once the economy regains its footing.
But, before you jump in, keep in mind that the macro picture of the South African market isn’t quite rosy. Not every stock is an excellent investing prospect. You must distinguish between equities that are discounted due to the current scenario and those that are undervalued due to their real performance.
Gold and other precious metals
In times of financial instability, precious metals are believed to be hedging assets. As a result, gold and silver prices are soaring over the world, smashing historic highs. Gold just surpassed the $2,000 per ounce mark, setting a new all-time high.
The upward trend is projected to continue for the remainder of 2021, despite the fact that the research of a vaccine for the virus is still far from completion. Although it may be a little late to invest in gold due to its already exorbitant price, other precious metals such as silver and platinum provide feasible investment prospects for South Africans.
If you’re thinking about purchasing bullion in South Africa as an investment, be sure you only buy from approved suppliers. To ensure that you get the most out of your investment, research the production, premium, commission, delivery, and storage of bullion assets.
Real Estate
The market is constantly high for building homes, making upgrades, flipping houses, and renting properties. In South Africa, there are many lucrative investment possibilities, but the entrance barrier is high.
With the current global state, it is projected that the quantity of houses for sale would increase as more individuals become unable to pay their mortgages. The prime rate has already been reduced by as much as 2.5 percent, but this hasn’t prevented property values from plummeting.
Property prices falling is precisely the scenario you should be anticipating. This will allow you to acquire homes that are undervalued at a discount. Remember to research the property’s expected worth after the market rebounds so you can make smarter selections about which asset to purchase today.