Gold and Bitcoin?

The current Bitcoin and cryptocurrency craze has taken markets by storm. While gold remained relatively range-bound, Bitcoin was moving higher-a lot higher-until hitting the $20,000 market this week. The currency has since pulled back a bit, but it is likely not the end of the run higher. Without offering a guess as to just how high Bitcoin and cryptocurrencies could potentially go, perhaps the bigger question and issue at hand is why these instruments are garnering so much interest.

The monetary system has been run by central bankers for a long time. These central bankers control the supply of money, and have the ability to make changes to it as they see fit. Expanding the money supply is often used as a tool to fight an economic slowdown, and central banks did a lot of that in recent years with all of the QE programs that took place.

Central banks are also supposed to lend money to other banks at low rates, and those smaller banks, in turn, are supposed to lend that money out to everyday people. This lending is a primary driver of the economy, as it stokes business activity, real estate activity and investment. Unfortunately, as was also seen in recent years, that doesn’t always happen. Sometimes banks are reluctant to lend, and would rather simply sit on the money. This can lead to a further economic slowdown or even recession.

The point is this: Investors have been eager to find more asset classes that are decentralized and not subject to tinkering with by central banks. Just like a central bank cannot create more gold to lower its price and increase its supply, the number of bitcoins that will be available is limited. Due to finite supplies and their decentralized nature, both gold and Bitcoin are likely to gain popularity in the years and decades ahead.

The recent appeal of Bitcoin and other cryptos just points to the underlying problem: People don’t necessarily trust the banking system. In addition, the fiat currencies used by these banking systems have a tendency to lose value over time. Investors appear to be waking up to this notion and are now willing to take action. And although Bitcoin  may currently be the “talk of the town;” we suspect that gold will in time also head to great new heights that have not been seen before in its history.

Both of these asset classes could play a meaningful role in your portfolio. Because gold has been moving sideways, perhaps gearing up for a major upside breakout, now may be the ideal time to buy. With the ongoing decline of fiat money and with the possibility of rampant inflation, investors are more likely to flock to these key asset classes.

Gold may represent an excellent value at current levels. The metal could potentially rise to $3000, $5000 or even $10,000 per ounce or more in the years and decades ahead. Gold has a long history as a reliable store of wealth and value, and that history is set to continue. Gold is of limited supply, and if you don’t own it already now is the time to get your hands on some.

Advantage Gold can help.

Speak with one of our account executives today about the potential benefits of gold ownership. Our associates are here to answer your questions, and can even show you how to invest in this key asset class for the long-term using your IRA account. There does not have to be a choice between gold and Bitcoin, your portfolio has plenty of room for both.

Don’t wait for higher prices or for the next major economic disaster before taking action. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started now.

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