When the stock markets are volatile, investors look to move their funds to safer areas, such as investing in gold. The stock exchange markets tend to fluctuate with the changes in national and global economy. Certain other factors such as elections also affect the stocks market. The indices can collapse anytime leaving the investors at the risk of going bankrupt or becoming rich.
The events that generally affect the global economy include elections in a super power country or global oil crisis can highly affect investment decisions. Investing in gold is therefore, relatively safe. This is because since the older times, gold is considered a safe currency for buying and selling and will remain a safe asset for times to come.
The gold reserves are limited around the world and so the industrial demand maintains the price of this metal – making it an easy investment option. Another reason why people believe it safe to invest in gold is that it can be inherited and passed on to coming generations. This asset can immediately be converted into cash. In times of stagnation in the commodity markets, the prices of gold were reported to have increased by 80%.
Investing in Cryptocurrency
Cryptocurrency behaves similar to gold when it comes to the fluctuations in the prices. Bitcoin has become a safe investment option for investors. It is a safe and easy way out from the risks that come with the volatile nature of the stock exchange. With the ever fluctuating stock exchange markets, cryptocurrency is taking the investment world by storm.
The reason why investing in cryptocurrency is a better option than investing in gold is, it is safe, and offers better returns. Gold has maintained a stable value over a period of last 10 years but there has been an increase of 5 to 10% a day in Bitcoin. You can check out the website of Gold Stackers for the latest prices and quotes.
Cryptocurrency has gained support from bigger corporations like Intel, MasterCard, J.P. Morgan, CME Group and Microsoft. There are higher chances of growth in cryptocurrency. Due to a centralized and highly confined and controlled centre of release, it cannot go out of control like gold.
Investing in cryptocurrency means that there will be total anonymity as compared to investing in stocks where everything is controlled by tax authorities. The authorisation of cryptocurrency cannot be faked as companies are creating their own currencies. Gold however can be faked. With the transition towards a digital age, cryptocurrency calls for attention from investors.
Gold is not easy accessible to everyone. A large amount of capital is needed in order to invest in gold while cryptocurrency can be bought. Cryptocurrency can also be used for investing online in ETF. However, one advantage that outweighs gold over cryptocurrencies is that it’s a tangible investment (unlike cryptocurrency that’s virtual). This is one of the major reasons why most seasoned investors prefer investing in gold over cryptocurrencies.