Will Precious Metals or Bitcoin Be the Future ?

Crypto Might have all of The Attention , But Precious Metals holds all the History !


With inflation rising faster now than policymakers in Washington had expected, many investors are starting to get nervous. Trust in the Federal Reserve to manage monetary policy and in Congress to moderate spending is slipping. Many people are starting to anticipate a market correction, if not an outright crash, and they are starting to try to front-run things, getting their money out and safely protected before the downturn.

Safeguarding assets can be as much art as science sometimes, as you have to know what assets will gain value and when. Nevertheless, there are at least some general principles that are time-tested.

Among those is the idea that precious metals such as gold and silver will generally perform better than stocks during times of economic turmoil. When stock markets collapse, investors flee to safety, and gold and silver have traditionally offered that safety.

Even when gold and silver are affected by a general downturn, their losses typically are not as severe as stocks, they recover their value quicker, and they go on to outperform stocks. Let us remember the 2008 financial crisis, when stock markets peaked in October 2007 and hit their lowest point in March 2009. Even though gold lost value during 2008, its overall gain of 25% during that 2007–2009-time frame was far better than the 50% losses suffered by stock market indexes.

Today there is a new competitor in town: cryptocurrency. Bitcoin and competitor cryptocurrencies were born from the ashes of the financial crisis, with their creators vowed not to repeat the same mistakes that monetary authorities made through their quantitative easing policies.

The purpose of Bitcoin and similar cryptocurrencies was to provide stable currencies that could not be inflated into oblivion like the dollar and other fiat currencies. Unlike the dollar, whose value and purchasing power has decreased by 98% since 1913, each unit of Bitcoin is supposed to gain in value over time. There is no chance of creating more bitcoins with a strictly controlled limit on production once the 21-million-coin limit is reached.

In that way, Bitcoin is intended to operate as a type of digital gold. Furthermore, many of Bitcoin's earliest disciples claimed that Bitcoin could even be superior to gold. Nevertheless, is that true?

Gold, Crypto, and Price Volatility

One of the many advantages of gold is its price stability over time. So many investors love to hold gold because of that stability. When stock markets are booming, gold can do well. Furthermore, even when gold has lackluster periods of growth, it still never sees the types of losses that can plague stock or bond markets.

Over time, the price trend for gold is ever upward too. Compare the gold price today to its historical prices, and you can see that over the past 50 years, it has provided performance similar to those of stocks. Moreover, over the past 20 years, its performance has even surpassed that of stock markets.

Cryptocurrencies have seen explosive growth in the first decade after their creation, with Bitcoin experiencing a 9,000,000% gain in its first decade. Many first adopters made much money, and the prospect for potential gains has lured many investors into the cryptocurrency sphere. Nevertheless, one of the significant drawbacks to cryptocurrencies has been their tremendous volatility.

Bitcoin hit an all-time high of $64,000 earlier this year but is currently trading for about half that amount. That is a pretty significant loss in just a short amount of time. Remember that it took stock markets 18 months to lose 50% from 2007 to 2009, whereas Bitcoin has recorded this loss in about two months. It is no wonder many new investors wonder whether they can trust their assets to cryptocurrency.

Gold, Silver, and Crypto Future Price Growth

All investors want to see their assets gain in value, after all, the entire point of investing. Moreover, the tremendous growth in cryptocurrency prices brings in more and more investors into the crypto fold. Nevertheless, the big question is how sustainable cryptocurrency price growth is.

Gold and silver have continually and consistently gained value over time. They have acted as safeguards for investor wealth, hedges against inflation, and stable assets through periods of economic turmoil.

The future outlook for gold is vital due to rising inflation and fears of a weakening economy. The outlook for silver is vital due to rising industrial demand from the photovoltaic industry. Moreover, with the possibility for gold and silver demand to outstrip mining supply in the future, demand-driven factors could continue pushing both gold and silver prices up.

Cryptocurrencies still operate very much in a place of uncertainty, both from a market perspective and from a regulatory perspective. They are the current "it" investment asset, but how long will that last? Will interest in cryptocurrencies eventually wane to the point that 20-30 years from now, we will look back at crypto as the Topp's Baseball Cards or Comic Books?

The Chinese government is engaged in an all-out war on crypto mining, crypto trading, and crypto usage on the regulatory front. It wants to promote its digital yuan and is determined to drive out competition. That, in turn, has spooked investors worldwide and helped drive cryptocurrency prices down across the board.

In short, gold and silver have a track record dating back centuries and a history of protecting wealth through good times and bad. Cryptocurrencies are a flash in the pan comparatively, and while they have shown tremendous growth over the past decade, there is no telling which cryptocurrencies will still be around a decade from now or if cryptocurrencies themselves will even be around in a decade.

Even governments that are relatively friendly to cryptocurrency today could change their tune in a few years. Furthermore, if governments decide to band together to suppress cryptocurrencies, the billions of dollars investors have poured into the crypto market could be lost forever.

How Gold and Silver Can Protect Your Retirement

Many today are looking to protect their assets, and notably their retirement savings. The possibility of massive losses just before retirement could completely derail your dreams of retirement. Furthermore, with the likelihood of a significant market crash growing every day, you never know when the downturn will come.

While younger investors have been quick to adopt cryptocurrencies and treat them as though they are a haven asset, older investors with more to lose have been more hesitant, and for a good reason. There is no reason to bet the farm on a brand-new class of assets when gold and silver have served the purpose of asset protection for centuries and continue to do so even today.

The temptation to try to make enormous profits from cryptocurrency investing can certainly be seductive, but the 25% gain gold made last year and silver is nearly 50% gain is nothing to sneeze at. Furthermore, once a market crash is underway, gold and silver could grow significantly more than that.

If you have retirement savings that you want to protect, investing in gold and silver can be a relatively simple process. With a gold IRA or a silver IRA, you can invest in physical gold or silver coins or bars while still enjoying the same tax advantages as your existing retirement accounts. And you can even rollover or transfer assets from your IRA, 401(k), TSP, or similar retirement accounts into a precious metals IRA without tax consequences. Call GoldPro today at 855-426-4653 or visit us at HTTPS://GoldPro.com. You may also direct any questions or concerns to Info@goldpro.com