The danger of a financial crisis was looming before the COVID-19 pandemic, but today governments and financial experts accept it as imminent. The memory of the last economic crisis still haunts many people who lost their jobs, homes or both. The coronavirus that led to the current health crisis has put the entire world on the trajectory of an economic crisis in a matter of weeks and will instigate further changes in our lives. How to mitigate personal risks and protect your assets when the economy is going through a severe upheaval like what we’re seeing now?

Gold Remains as Dependable as Always

Gold is one of the safest investments one can make since it’s an asset that retains its purchasing power over time. History shows that during financial crises, the value of gold increases significantly. Events that cause stocks and bonds to decline to abysmal rates increase the market value of gold.

For ages, gold has been the safest alternative for people wanting to protect their wealth from natural disasters, wars, geopolitical crises or financial crises. While in the short-term, gold is not among the best investments, many call it a crisis commodity, which means that whenever tensions of any kind arise in a society, it outperforms most other types of investments.

Cryptocurrencies: An Emerging Force

Although reliable and safe, gold has its drawbacks. You cannot make online payments in gold or trade it for day-to-day services. In recent years, the rise of cryptocurrencies has provided powerful alternatives to gold, much more suitable to the demands of modern life. Many view digital currencies as a haven for navigating a financial crisis since they do not suffer the same devaluation as national paper currencies.

Another great benefit of cryptocurrencies like the popular Bitcoin is how easy and convenient is to make a transaction. You can do a considerable bitcoin purchase with a few clicks on the Internet and proceed to use your bitcoin wallet for online transactions. Adding that during a financial crisis, cash is hard to come by, there is a good reason to move to digital payments.

Core Sector Stocks Are Always a Good Idea

Many people rush to give up on stocks when a recession becomes imminent, but financial experts see things more nuanced. Whatever the state of the economy, there are core sectors that remain unaffected despite how dire the situation might look. Healthcare, utilities, consumer goods and transportation are sectors that provide investors with good returns anytime.

When other sectors struggle to survive, core sectors remain as relevant as ever and receive increased protection from the government because, without them, normal life would be dangerously disrupted. If you want to protect your savings, consider investing in core industries knowing that people will continue to need medical supplies, electricity, food or household items in any circumstances.

The best way to protect yourself from the pitfalls of a recession is to move to assets that will remain intact or even grow in value during a crisis. For minimal risks, you can diversify your investments. Remember that without proactive strategies, you’ll be left at the mercy of chance.