What do you think about Gold and Silver?

Dear BitcoinPub community,

What do you think about investing in Gold and Silver? Right now I see, that the huge market crash will appear in the nearest future. I’m interested what would you do in this case?
As @peter says - What caused the financial crisis?
Right now I’m heavily investing in Bitcoin but also think about the alternatives, such as Silver and Gold.
What do you think, could they hardly crash in case of the crisis? As I can see from this chart - Gold is in uptrend from 2001 and it lost 35% in 2007-2008. Silver lost 59%, but it’s right now in a flat. Want to know your opinion.
https://www.tradingview.com/x/0t1vF6f4/ - Gold
https://www.tradingview.com/x/aeMM7Z2V/ - Silver

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I think silver is going to become completely demonetized soon (next decade or two) and anyone investing in it is off their rocker. But that’s just my 2 cents.

Bitcoin is better than gold.

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But is the Bitcoin much more used than Gold/Silver in the world? I think lot’s of people right now even don’t know what is Bitcoin, but they do know what is Silver/Gold.
I know that it will replace the fiat, but could it be this next crash?

3 Likes

Let’s start with a quote from the bible, posted by an atheist nonetheless:

Ecclesiastes 11:1-6

Ship your grain across the sea;
after many days you may receive a return.
Invest in seven ventures, yes, in eight;
you do not know what disaster may come upon the land.

If clouds are full of water,
they pour rain on the earth.
Whether a tree falls to the south or to the north,
in the place where it falls, there it will lie.
Whoever watches the wind will not plant;
whoever looks at the clouds will not reap.

Sow your seed in the morning,
and at evening let your hands not be idle,
for you do not know which will succeed,
whether this or that,
or whether both will do equally well.

There Is No Single Answer

The arguments for Bitcoin or gold come down to one word: Protection.

Stock prices are high, but we all know they fluctuate. Currencies also fluctuate in value. Bad governments can destroy savings by simply printing money. Investors with money want one answer that solves the problem of money. Either Bitcoin or gold could provide the protection you want based upon your needs and beliefs.

There is no one answer. If someone comes upon your grave 5,000 years from now to find some gold bars and your Bitcoin wallet, they’ll probably take the gold. But you won’t notice. On the other hand, if the stock market or the dollar or both crash this fall, a lot of money is going to move into Bitcoin, and you can then turn it into whatever currency you want.

We’re left with the ultimate, boring answer. Diversification. If you want to protect your money from a downturn, keep it in many different places. Be defensive with Bitcoin or gold if you want, but spread the wealth among asset classes, with some in a variety of stocks, some in bonds, some overseas and some in real estate.

If you have bets across the board some are bound to win.

See also https://www.selfmanagedsupershow.com.au/true-diversification-with-bullion-and-crypto-currencies/

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Haven’t given it much thought. Crypto and index fund.

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Bitcoin is better than gold. What props up golds value? I promise you it isn’t industrial use. IMHO diversification is for people who lack conviction and expertise. That’s not a pointed statement, its just true.

The diversification mantra comes from warren buffet who quite literally predicated it on the idea that you can only be an expert on a handful of things in life.

Altcoins are not a hedge against bitcoin.

Silver is not a hedge against anything.

Bitcoin is a hedge against everything.

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I don’t see the point. I’d rather take the risk on crypto and have a much higher return.

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I wonder what impact asteroid mining would have on these metals, if we found a way to get these metals back to Earth, would the value drop??

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There Is No Single Answer

The arguments for Bitcoin or gold come down to one word: Protection.

Stock prices are high, but we all know they fluctuate. Currencies also fluctuate in value. Bad governments can destroy savings by simply printing money. Investors with money want one answer that solves the problem of money. Either Bitcoin or gold could provide the protection you want based upon your needs and beliefs.

There is no one answer. If someone comes upon your grave 5,000 years from now to find some gold bars and your Bitcoin wallet, they’ll probably take the gold. But you won’t notice. On the other hand, if the stock market or the dollar or both crash this fall, a lot of money is going to move into Bitcoin, and you can then turn it into whatever currency you want.

We’re left with the ultimate, boring answer. Diversification. If you want to protect your money from a downturn, keep it in many different places. Be defensive with Bitcoin or gold if you want, but spread the wealth among asset classes, with some in a variety of stocks, some in bonds, some overseas and some in real estate.

If you have bets across the board some are bound to win.

2 Likes

Interesting channel too - https://www.youtube.com/watch?v=EdSq5H7awi8

1 Like

A whole lot less gold is used for industrial demand than you might think. It’s used primarily in jewlery…and that’s mainly because it holds its value and its shiny. If you think it would hold its value based on industrial demand alone you would be sorely mistaken.

Bitcoin is superior to gold in terms of store of value in every conceivable way.

4 Likes

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