Due to the recent meltdown of the cryptocurrency exchange FTX, there has been a resurgence of interest in gold and silver bullion amongst crypto investors who are now using websites like SDBullion.com to exchange their crypto for precious metals.
FTX was the second largest cryptocurrency exchange in the world which created a lot of doubt and concern with investors that are buying cryptos because they don’t trust government fiat currencies. The next option for these investors? Physical gold and silver.
Why Gold and Silver?
Gold and silver have long been considered to be two of the most stable and safe investments in the world. They are often referred to as “precious” metals because they are rare, durable, and have a high value-to-weight ratio.
Gold and silver are also highly liquid, which means they can be easily bought and sold on the open market.
And last but not least, gold and silver have historically held their value better than fiat currencies such as government-issued paper money, making them an attractive option for investors looking to protect their wealth from inflation.
The Rise of Crypto Bullion Exchanges
In recent years, there has been a proliferation of online exchanges that allow investors to buy and sell gold and silver bullion with Bitcoin and other cryptocurrencies.
These exchanges offer a convenient way to buy precious metals without having to deal with traditional banks or financial institutions. And because crypto bullion exchanges operate 24/7/365, investors can buy or sell bullion anytime, anywhere in the world.
All of these exchanges offer a user-friendly platform for buying and selling gold and silver, as well as a variety of storage options for those looking to hold their bullion offline, such as in a physical vault.
Which is the Better Investment Between Gold or Bitcoin?
The answer to this question depends on a number of factors. First, let’s take a look at gold. Gold is a precious metal that has been used as a form of currency for centuries.
It’s abundant enough that coins can be created, but rare enough that not everyone can produce them. Gold is also durable, so it can be stored and transported easily. Lastly, gold is divisible, so it can be divided into small units and traded for goods and services.
Now let’s take a look at Bitcoin. Bitcoin is a decentralized digital currency that was created in 2009. It’s not controlled by any government and is also scarce, so there will only ever be 21 million bitcoins in existence.
Additionally, Bitcoins are divisible, so they can be divided into small units and traded for goods and services. Lastly, Bitcoins are easy to transfer as they can be stored in a digital wallet and transferred electronically.
So, which is the better investment? Gold or Bitcoin? The answer depends on your goals and objectives. If you’re looking for a safe investment that will hold its value over time, then gold is a great choice.
Gold Bullion vs. Crypto
One of the biggest advantages of investing in gold bullion is that it’s a tangible asset that you can hold in your hands. Gold is also a safe haven asset, meaning that its value tends to increase when stock markets decline or suffer from volatility.
Additionally, with gold bullion, you don’t need to worry about technological advances making it obsolete. As long as people value gold, its value will remain steady over time.
The downside to investing in gold is that it requires storage space. You can’t just store a bar of gold on your computer like you would with crypto assets.
Silver Bullion vs. Crypto
The main advantage to investing in silver bullion over crypto assets is that silver is much more affordable than gold, meaning smaller investors don’t need as much capital upfront in order to purchase silver bars or coins.
However, like gold, silver also requires physical storage space which may not be feasible for some investors who don’t have a secure location for storing their assets.
Unlike crypto assets, the value of silver tends to track the price of other commodities such as copper or zinc. This means that if those prices decline then so too will the price of your silver holdings.
The Advantages of Gold as an Investment
Here are some of the reasons why you should consider adding gold to your portfolio.
- Gold is a Hard Asset
Gold is a physical asset, which means it can’t be created or destroyed. The total amount of above-ground gold in existence today is estimated to be around 190,000 metric tons with about 50% of that being held by central banks and 40% held in private hands as jewelry, coins, and bullion.
That leaves a relatively small amount available for investment purposes. Gold’s rarity makes it a valuable commodity that can potentially offer investors protection against inflation.
- Gold is Inversely Correlated with the Stock Market
When the stock market falls, investors often turn to gold as a safe haven asset. That’s because the two markets tend to move in opposite directions.
While there are exceptions to this rule, gold typically outperforms stocks during periods of market turmoil. This makes gold an effective hedging tool for diversifying your portfolio and reducing your overall risk.
- Gold Offers Protection from Currency Devaluation
Another advantage of investing in gold is that it can help insulate your portfolio from currency devaluation. When paper money loses its value, gold tends to hold its purchasing power and even increase in value.
That’s because central banks can print more money, but they can’t print more gold. This makes gold a good way to preserve your wealth in times of economic uncertainty.
With economic uncertainty on the rise, it’s no surprise that more people are turning to gold and silver bullion as a safe haven for their investment portfolios.
Thanks to the existence of crypto bullion exchanges, it’s now easier than ever before to buy precious metals with cryptocurrencies.