Safest Investments during economic decline

Investing during an economic decline can be tricky, but you don't have to avoid it altogether.There are definitely some ways to get the most out of your investments; you just have to be aware of the safest investments during economic decline.

Here is a list of some of the safest investments to make during an economic crisis:

• Gold or Gold stock. Many people believe that during economic crisis Gold is a safe thing to investment.While it isn't the safest, it can offer more security than other types of stocks during an economic decline.While many stocks will crash during an economic crisis, Gold will generally go down but almost always come back up.Things like fiat currencies will come and go, but gold has outlasted all of them.Most people are willing to bet a few dollars in gold stock than they are any other.
• Treasuries.The great thing about buying treasuries is that they are owned by the government and you know you will get that money back.You basically give the US government your money and they give you a piece of paper that states your maturity date and when you can exchange your paper for your principal and interest.Some examples of government treasuries are Fidelity U.S. Treasury Money Market Funds, Vanguard Treasury Money Market funds, etc.They can work both for and against you however.If there is enough interest you can lose some of the interest and principal.They are however safe investments because you accept very minimal interest.
• TIPS (Treasury Inflation-Protected Securities).This is very similar to investing in government treasuries.You basically give the government your money and they again will give you a piece of paper.However TIPS provide protection against inflation.The principal behind it is that it increases with inflation and decreases with deflation.As your TIPS mature, you get the adjusted principal or original principal; whichever is greater.They are relatively cheap and one of the safest types of investments during economic decline.
• CD's (Certificates of Deposit).A certificate of deposit or CD is a time deposit; a financial product of commonly offered to consumers by banks, thrift institutions, or credit unions.They are similar to savings accounts in that they are insured and virtually risk free.They are generally insured by the FDIC for banks.The difference between a savings account and a CD is that the CD has a specific time frame for its maturity.It can be anywhere from three to six months, and sometimes as long as five years.In exchange for keeping the money on deposit the institution will usually grant higher interest rates than they do on accounts where money is withdrawn on demand.
• Non-Cyclical stock.If you just can't stay away from investing in the stock market and the economy is in a crisis you still have a few options.There is what they call "non-cyclical" stock, or stocks of food, supplies, or other necessities that people will always buy no matter what the crisis is.Some examples of this type of stock may be "Johnson and Johnson" products, "Proctor and Game" or even "Coca Cola" products.

So remember, if you want to invest even though the economy is in financial crisis remember to keep this list of safest investments during economic decline on hand.