Many investors, both new and old, have heard of the developments surrounding cryptocurrency. Bitcoin, the cryptocurrency with the largest impact, has been the leader when it comes to value. Over the past few years, the digital coin has reached new heights as it broke past the $68,000 mark in 2021. Although volatile in its price trends, many believe it to be a good inflation hedge and have dubbed it “21st
Precious Metal bullion, such as the 1kg Silver Emirates Gold Bar
, still holds a place within investment portfolios thanks to its historical use as an inflation hedge. However, the tide of cryptocurrency products coming into the market has challenged its position. What’s the difference between both and how can individual investors leverage them according to their financial goals?
APM Bullion is here to shed some light on the debate as we go through some of the aspects you’ll need to know before making a decision. Value tends to cloud our sensibilities so we’ll make sure to lay out the pros and cons of each investment vehicle and how it can help you diversify your portfolio!
Gold vs. Crypto: Competing Products With Similar Niches
Concerns about rising inflation rates and other economic threats have made investors seek out potential ways to protect themselves from its effects. One exciting development was when Bitcoin rose in price, poising itself as gold for the digital market. Can it compete with gold and silver products that have historical usage to back themselves up?
Performance Of Both Assets Over 2022
Assets all across the board were affected in 2022 as the US Federal Reserved started its string of interest rate hikes to stem the tide of Inflation. Gold remained quite stable throughout the entirety of last year with only a minimal price reduction of around 0.7%. However, it didn’t manage to beat skyrocketing inflation rates that reached 6.5%.
For Bitcoin, the story is quite the opposite as the asset ended the year with a massive loss of value. It lost around 65% of its overall market value, catching crypto investors in a shocking twist of events. Other factors, such as the FTX Crypto Exchange Fiasco, also harmed countless cryptocurrencies as it lessened confidence within the entire asset class.
However, there are contrasting views as to whether Bitcoin might rise again or not. As the Federal Reserve looks to retain its aggressive stance towards inflation rates, a rebound might not happen for at least a few years. Many look to bullion products to provide some form of long-term stability during these volatile economic periods.
Advantages and Disadvantages of Gold vs. Bitcoin
Without the lens of performance metrics, there are other factors to consider when deciding between Bitcoin and Gold. These include the asset’s liquidity and the regulations surrounding each one. For those looking for long-term liquidity, both are standard options but it all depends on whether the market hosts options for liquidating said assets. Cryptocurrencies such as Bitcoin are yet to reach the same level of liquidity as gold since typical crypto exchanges tend to have an allocated limit per day.
Gold, on the other hand, allows for quick and simple liquidation due to one simple fact: There will always be demand for gold. Whether it’s in the form of futures or bars of solid metal, there’s always interest in obtaining it. Not only that but the industrial uses for gold lend it more credence as an investment that’ll always hold value no matter the state of the market.
Even silver plays a similar tune to gold as silver traders in Dubai
continue to see increased transactions as the market opens up. Precious metals continue to grow more prevalent within portfolios as capital retention remains as important as ever.
APM Bullion: Capital Security Through Gold and Silver Products
Silver traders in Dubai have access to higher-quality bullion products made by esteemed refineries within the UAE. Emirates Gold has been a long-time player in the refining industry, creating products such as the 1kg Silver Emirates Gold Bar. For those looking for a reliable trader to work with, look no further than the skilled minds behind APM Bullion.
APM Bullion, founded by Rakesh Rajdev Rajkot
, has been providing clients with the best options for their portfolios. On our official website, we host a roster of different bullion products available for individual investors to select. See what Rakesh Rajdev
and his team of market experts can do for you when it comes to investing in precious metal products!
Follow Us On Our Social Media Pages