In this world, economic growth should never be taken for granted. Environments of global unrest, bank failures, crypto exchange collapses, rising inflation, and social tension can trigger financial leaders to look for options. When times like these occur, knowing how to protect hard-earned wealth and feel financially safe is important.
Begin with Diversification
This is a primary measure that most financially successful leaders automatically consider. They would say it’s standard practice not to be too strongly tied to any asset, currency, or location. Many different investment options can be investigated, including standard markets and physical assets with stable track records of holding value.
Some of these assets seem resilient against rising inflation. They can include a blend of the traditional and nontraditional, the tangible and intangible, such as real estate, precious metals, fine art, precious jewelry, private equity, and many fiat or even cryptocurrencies.
Diversification is Only One Step–Mobility is Another
Mobility and accessibility often go hand in hand for the financially minded. As CEO of Idoneus International AG, Jarrett Preston says, “Inaccessible value is no value at all”, so unrestricted access to many different forms of value can become a primary focus during instability. A system in place to enable the swift, safe, and legal movement of wealth and value can assuage this.
In the book Billions Under Pressure, Preston gives an example of a client who had a significant portion of his wealth tied up in a luxury villa. He wanted to sell but held out for the right buyer until, finally, social unrest saw him and his family evacuated from the rooftop by helicopter. This client lost a significant piece of his wealth on that day.
If the client had kept more of his assets free to move and access when needed, where needed, the outcome would have been far different.
An Altered Understanding of Currency
Historically, there is a predictable cycle of optimism and unrest surrounding the rise and fall of nations. Fiat currencies can get wrapped up in this cycle, with some currencies plummeting to zero value while others rise to become a new global reserve currency.
However, Preston explains that some currencies that are not forms of money—such as strategic relationships, unique knowledge, and freedom—can be more valuable in a given circumstance. The financially minded will also invest in these more abstract forms of currency. They will invest in trusted relationships, mentors, advisors, and communities.
Using Modern Tech to Trade in Non-Currency Assets
Technology has changed how non-currency assets like real estate, diamonds, and fine art are exchanged. Online markets like Idoneus let investors register portfolios of assets and trade them without the middle step of liquidating their value to fiat currency. This creates what they call a “closed-loop global luxury market” that lets investors “Use an asset to buy an asset” as well as access goods and services. In the case of Idoneus, in particular, the value is stored as a payment token on a blockchain and is not to be tied to a fiat currency. This step mitigates concerns about the fluctuations or collapse of real-world currency values.
Whatever means leaders employ, the goal of diversifying assets into high-value goods, keeping their holdings mobile, and investing in more abstract ideals of value seems to operate as insurance against the fluctuations of fiat currency, inflation, and unrest. With global markets more accessible than ever before, such insurance should be open to a historic number of investors.
About Idoneus
Idoneus is a global, luxury, online marketplace for assets, goods, and services. Created by leading industry professionals representing over a century of combined experience in international luxury asset trading, international banking & wealth management, strategic planning, as well as fintech, blockchain, tokenization, and cryptocurrency. We are transitioning an entire global barter industry which was established decades ago onto the blockchain. Technology advancements now enable asset exchanges of all kinds (fiat, tokens, and physical assets) to be facilitated much more swiftly, transparently, and securely.
Investing involves risk and your investment may lose value. Past performance gives no indication of future results. These statements do not constitute and cannot replace investment or financial advice.
