Business & Finance Wealth Building

Cyprus Reminds Us That Traditional Investments Can Be Risky

The recent financial events in Cyprus and the European Union should act as a sharp and constant reminder to investors, that many of the traditional strategies for investing their money, like bank accounts and currencies for example; have become a serious financial gamble at best. Cyprus has further demonstrated to the international investment community, that a bank savings account is not as safe as anyone would have expected and can apparently be seized for saving the bank's future, not necessarily an investors'; as it was originally intended. These actions have called into question the safety and security of bank deposits all around the world and is causing more and more investors to pull their money from the spiraling banking sector, not just in Europe but in many other regions across the globe; as well.

Once again, it would seem that the actions of the banking sector have caused the investment community to leave the "safety" of another traditional investment, just as quickly as investors did with the real estate markets a half-decade ago, and seek-out investing opportunities that can (at least) preserve their investment's principle and consistently deliver investment profits; for the full term of their financial commitment. For most investors, this has meant conducting extensive research into other markets and taking the time to consider investing alternatives, that traditionally would not have made an appearance in a private investor's portfolio. In fact, an increasing number of investment-seekers have invested in hard, tangible assets, like precious metals, gems and shipping containers; in an effort to simply preserve their principle and promote steady long-term growth of the initial investment and their own personal wealth.

The fact that government officials and banking officers in Cyprus were able to seize the assets in the saving accounts of bank customers, without any consideration for the future of their citizens or investors, has caused widespread concern and outrage among members of the investment community. Because of this, no longer will the banking sector be seen as a low-risk investment that can preserve a person's wealth. Nowadays it would appear as though a savings account, whether it be in Europe or not, has become as risky as stocks, bonds, currencies and real estate investments. Thankfully though, since the collapse of the housing market and many banks back in 2008, alternatives for confused investors have emerged to provide profitable options and hope; for the world's growing number of apprehensive investment-seekers.
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