You can get rich by investing. Leaving money in your bank account won’t make it increase even though some banks do give interest for saving money. You might have the money to invest but not know where to invest it. Find about the growing business worth investing in South Africa.
Well, there are many markets and growing businesses that are worth investing in South Africa traders.
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Forex
As the largest financial market in the world, Forex involves buying and selling of foreign currencies. Significantly, the South African Forex industry has recorded steady growth in the past few years.
You should invest in Forex because it’s affordable and open to everyone. You can start a Forex investment with as little as ZAR 1,500. Furthermore, when you invest in Forex, you can conduct business at your convenience because the market is open 24/7 (except on weekends), while you can trade on any currencies you want.
The Forex market is very flexible, which makes it profitable. In traditional stock markets, you mainly make money when the prices of commodities you buy increases. In the Forex market, you can make money whether the price of currencies is going up or down.
This is because the market works in pairs, i.e., you trade one currency against the other. For example, USD/GBP; if the USD is depreciating, the GBP appreciates and vice versa.
If you want to invest in Forex, you’ll have to invest with a regulated broker, so you are guaranteed your investment is safe. The FSCA regulates forex trading along with other financial activities in the country. Regulated brokers are those with an FSCA license or a license from any of the foreign regulatory bodies.
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Gold
Gold, as you should already know, is a highly valued commodity. The largest gold reefs in the world are in South Africa that has extracted the massive amount of gold in the world. Production might have declined, but the South African gold market is still very vibrant and ideal for investing.
Investing in gold is ideal because it is a mainstream asset. Many factors affect gold prices, not just demand and supply. The commodity is a diversifier and the most effective there is.
This makes it an ideal hedge against inflation. If inflation is rising, gold prices increase because many investors will convert their money to hard assets like gold to maintain their value. You can invest in gold by buying and storing physical gold or purchasing gold certificates from South African investment banks.
You can also buy shares in gold mining companies or invest in gold ETFs, futures, options, and CFDs on exchanges.
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Communications and IT
Almost everyone uses a mobile phone these days so the communications and IT market is always active. However, the communications and IT market involves companies that make communication possible. Whether through landlines, cells, TV, Radio, internet, satellite, etc.
There are three main sectors of the communications and IT market. They include telecom services, telecom equipment, and wireless communication. With new inventions rolling out like the 5G technology, there’s no better time to invest in communications and IT than now.
Aside from that, communication stocks are worth investing in because companies offer great dividends. You can invest in stocks from MTN, Telkom, Vodacom, Bharti Airtel, Multi-choice, etc.
The better your telecom or IT company’s performance, the better your chances of getting profit returns. It’s also worth noting that the communications and IT market in South Africa is a very competitive one which makes it somewhat risky.
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Agriculture
If you’re not aware, the agricultural industry contributed to 10% of South Africa’s total export in the 2019 fiscal year. This was valued at $10.7 billion. Unfortunately, when it comes to possible investments, agricultural stocks are most often overlooked.
For a long time, the agricultural sector in South Africa has been one of the strongest in Africa and is expanding. Although the South African economy has faced several challenges recently, the agricultural sector remains unaffected. On the contrary, it has increased in value.
There are several agricultural companies listed in the JSE, and you can invest in the market by purchasing shares in any of these companies. It’s crucial to invest with companies on the JSE so no one will walk away with your money.
Bottom Line
If you’re contemplating where to invest your money, search no further. You can invest money in the Forex market with a licensed broker and expect worthwhile returns. The market is a growing one that is attracting many local and foreign players, so you don’t want to miss out. Aside from Forex, you can also invest in Gold, communications & IT, and agriculture.
