Investing in Cryptocurrencies Vs Precious Metals
Before crypto, investors were going crazy about another asset called collateralized debt obligations.
However, when its bubble burst in 2008, the global financial system collapsed and small-time investors lost billions of dollars. On the other hand, gold has a lot of impressive qualities that enable it to stand its ground in the face of emerging asset classes.
If you are a new investor who is confused about which asset you should invest in, then this post can help.
Crypto is Volatile
While some have become overnight millionaires due to early investments in bitcoins and other coins, a lot of crypto newbies have also fallen victim to scams and lost their savings in the process. Even reputable coins like bitcoin that were considered stable are almost 60% down.
The crypto crash and stock market crash are happening in front of everyone. This has again made investors realize the importance of investing in real assets like precious metals.
Precious Metals Offer Stability
The value of precious metals rises as uncertainty goes up in the world. This is why investors who are tired of all the market fluctuations are buying real bars and coins to protect their wealth. They help hedge inflation rates that erode the purchasing power of their assets.
On the other hand, cryptocurrency is the preferred method of payment on the dark web, which is why a lot of countries have banned it altogether and others are thinking of following suit. While cryptocurrencies might cost less to store and transport than precious metals, crypto wallets face a greater threat from cyber criminals.
Solid Fundamentals to Back Them Up
Precious metals have real utilities attached to them that derive their values. For instance, silver has many industrial applications that affect its demand. Platinum has supply-side constraints from real mines that investors keep an eye on.
On the other hand, crypto coins are virtual coins rewarded to crypto miners that use their computers to solve an algorithm. There’s nothing that backs them up. A group of people might have us believe that a coin has value but they could easily dump it the next day.
Choose an Experienced Precious Metal Exchange
Orion Metal Exchange is a highly experienced precious metals investment dealer that is accredited with the NRA Business Alliance. We offer high-quality gold, silver, palladium, platinum bullion, and coins in America.
Our team takes pride in helping people protect their investments from the financial stability in the world. We have no setup fees or transfer fees and charge no storage fee for 3 years. We also help with precious metal storage options and setting up your precious metals IRA.