Why Precious Metals Are the Perfect Alternate Investments for Volatile Cryptocurrencies
Cryptocurrency investors have had a rough year with the value of Bitcoin and other virtual currencies plummeting back to earth. This fall from grace has affected countless cryptocurrency investors. If you have been hit hard by the crypto storm, then it’s time you learn about the reasons that have been behind its downfall and why precious metals are the perfect alternative investments that can help you bounce back.
Here’s Why Crypto is Volatile
While it is true that many early adopters have become millionaires, the vast majority of investors have not; in fact, many have lost money along the way. The crypto market is volatile as there aren’t fundamentals that back it up.
They have no intrinsic value and come into existence on a computer according to a predefined algorithm that helps mine them. Their value is almost entirely based on user sentiments about their perceived value, which can easily lead to their demand fading away. Other factors that determine its price include media hype and government regulations.
Weak Stock Market Performance
With the Fed hiking its rates due to high inflation, consumer spending is expected to be suppressed and company sales will go down. This is accelerating rumors of a recession and leading to investors dumping their stock positions while they can. Small-time investors that bet their whole life savings on the stock market stand to lose a lot of money.
Precious Metals Offer a Solution
With both the stock market and crypto market highly volatile, investors are looking to safeguard their net worth by switching over to precious metals such as gold, silver, platinum, and palladium. Gold, specifically, has traditionally been considered a counter-cyclical asset that tends to thrive in inflationary and volatile times.
This is why including them in your portfolio can help offset any losses that your other investments such as stocks or crypto may experience during this time. You can buy bullion bars and coins and store them at home or a commercial depository of your choosing. Investors can even take advantage of tax incentives by opening a precious metals IRA account.
Select a Reliable Precious Metal Exchange
Orion Metal Exchange is a reliable precious metal exchange that helps its clients secure retirement with gold and silver coin options. We have a wide array of gold, platinum, palladium bullions, and coins that help their clients shift to real assets with an actual intrinsic value from virtual ones.
Contact us now to learn about our processes and services today.