Photo: How to invest correctly? Source: Pixabay.com

Investing is a tool that allows you to defend against the depreciation of money. It is an activity in which a person invests his finances in long-term goods (investments) - and in exchange for postponing current consumption, he expects an appreciation of his funds. The preliminary stage of investing is the saving process, when savings are created, i.e. free capital, which you can later use to buy investments.

It may seem that investing is a modern invention of recent years. But the opposite is true. People have had a problem with inflation since ancient times. Therefore, man has always looked for an insurance policy in case the national currency loses its value. After all, the first stock exchange was already established in the 16th century.

Don't be confused: Should I buy gold or silver?

Gold is considered to be the oldest investment that has lasted with us until today. This precious metal also served as a unit of payment for a significant part of the past. Its historical performance shows that gold is a stable and profitable investment in the long term.

Along with gold, shares are typical investments. This term covers the securities of a certain company - Czech or foreign - after the purchase of which the investor becomes a shareholder of the given company.

If the company is listed on the stock exchange, the investor can speculate on its price rise or fall thanks to the ownership of the stock. The degree of investment appreciation is usually based on the quality of the selected company and its economic results.

Other types of investments include bonds, which are securities that can be issued by a company or government. Next to them, investors look for commodities, currency pairs, cryptocurrencies or alternative investments, for example.

Summary of investment types

stocks
shares of mutual funds
bonds
derivatives
commodities in the form of exchange contracts
real estate
investment gold
investment silver
investment diamonds

"Investment coins in the Czech Republic have been issued by the Czech National Bank for 30 years since 1993. Minting for the CNB is provided on the basis of five-year emission plans by the Czech Mint."

Every investment is, in addition to the expected rate of profit, also a certain risk. Depending on the type of investment, you need to familiarize yourself with the degree of risk involved. That is, with the fact that you can also lose part of your investment. You will learn more about that in the next part of the investment guide, where we will deal with inflation.

Czech Mint in Jablonec nad Nisou

The Czech Mint from Jablonec nad Nisou has been a reliable partner of the Czech National Bank since its foundation in 1993. During that time, it minted 3.5 billion coins. For the CNB, it produces all metal currency that jingles in the pockets of Czechs, i.e. 1, 2, 5, 10, 20 and 50 CZK coins, but also all gold and silver commemorative coins with nominal values of 200, 500, 5,000 and 10,000 CZK .