More confirmation over the last week that the Australian economy is heading into uncharted waters, with news that over the last three years, household living standards have fallen by levels not unlike a recession. This is at a time when the federal government is fixated on achieving a budget surplus. Overall, the national economy is growing slower than it has since 2001 and private sector investment is growing slower than at any time since the 1990s recession (remember when the official interest rate topped at 17.5% and Paul Keating made his famous statement – “The recession we had to have”?)
In the current environment, the banks aren’t doing you any favours as custodians of your hard-earned savings. ING’s Savings Maximiser pays you the princely sum of 1.8% on deposits, while your ANZ Online Saver Account yields 1.6%. Even Rabobank with their top introductory rate of 2.5% for four months, doesn’t offer much of a reward, especially when you deduct inflation which is currently running at 1.9%. Remember you also need to deduct tax – the ATO will always know how much interest you earn through data matching, so in effect you’re well and truly losing money by holding cash!
Even the property sector (once the darling of Australian investors) is facing significant challenges. Property data provider, CoreLogic has revealed that for August, nearly a third of off-the-plan unit buyers in Sydney were moving into new apartments worth at least 10 per cent less than the price they purchased them for. In Queensland, a staggering 43.1 per cent of units were worth less at settlement, and in Western Australia it was 22.5 per cent of apartments. The negative headlines around flammable cladding and structural defects aren’t helping either.
All of this makes attaining financially independence a significant challenge. But what we do know is that we have to invest to get ahead – Only a few of us get to work our way to financial freedom and even those individuals still invest to secure their future. One of the best ways you can hedge against low returns and obtain significant capital growth is by investing in Australian pink diamonds. There is plenty of data to show that Australian pinks have outperformed other investment classes over an extended period and will continue to do so as the supply reduces. Call Argyle Diamond Investments so that we can share our knowledge and expertise with you and help you choose the best Australian pink diamond for your investment portfolio.