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A safe asset is one that has a certain future return—and definitely no opportunity they will drop in value or emerge as worthless altogether. Risk-free property tend to have low quotes of return, when you consider that their protection potential buyers don't need to be compensated for taking a chance.
What is a suitable safe rate?
In practice, the reliable price is generally regarded to equal to the activity paid on a 3-month government Treasury bill, typically the safest funding an investor can make.
Is gold a safe asset?
Gold as a store of wealth
that it has the ability to maintain its cost over a long duration of time, therefore the cause why some people consider it to be risk-free. This popularity is based totally on centuries of overall performance consequences indicating that gold expenditures tend to go up in times of monetary instability or political unrest.
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