BTC Silver and Gold

[19Nov16]

Almost 60% of my net wealth is in the form of Bitcoin and other cryptocurrencies (that is mostly because I made my investments back in 2014, when the Bitcoin prices were very low). However, at this point around 4% of my wealth is in gold (mostly gold ETF, a small fraction in the form of physical gold coins). I have a few bars of silver with me, but I have never invested in that metal seriously. At this point, my silver holdings are around 0.01% of my net wealth. I am thinking about increasing my gold stocks. But now the prices have gone up by quite a lot.

Of course this is according to our considerations, keeping 60% of assets in bitcoin and altcoins, I have kept bitcoin assets with an amount of around 50% and it always makes me worried so I have to check prices frequently, if there is a daily decline of more than 5% then I will sell so this makes me tormented so that I leave only 10% of assets.

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[Fara Chan]

Of course this is according to our considerations, keeping 60% of assets in bitcoin and altcoins, I have kept bitcoin assets with an amount of around 50% and it always makes me worried so I have to check prices frequently, if there is a daily decline of more than 5% then I will sell so this makes me tormented so that I leave only 10% of assets.

It seems that your heart is not strong enough to hold Bitcoin for a long time so you still feel worried when you are holding a larger amount of Bitcoin. And because you still feel that way when holding the best crypto assets like Bitcoin, you are not suitable to be an investor and also not suitable to be a part-time trader because you will always be busy checking market prices which is basically not necessary.

And if you are still afraid of falling prices in the market, you better not hold any crypto assets of any size right now. Because it will be much better for you where you will live more comfortably without the need to spend time continuously checking prices in the market. But what's still strange here is why do you dare to keep 10% of your assets in crypto without checking the price? Even though it's not much different when you keep 50% of your assets in crypto.

[Wend]

Almost 60% of my net wealth is in the form of Bitcoin and other cryptocurrencies (that is mostly because I made my investments back in 2014, when the Bitcoin prices were very low). However, at this point around 4% of my wealth is in gold (mostly gold ETF, a small fraction in the form of physical gold coins). I have a few bars of silver with me, but I have never invested in that metal seriously. At this point, my silver holdings are around 0.01% of my net wealth. I am thinking about increasing my gold stocks. But now the prices have gone up by quite a lot.

Of course this is according to our considerations, keeping 60% of assets in bitcoin and altcoins, I have kept bitcoin assets with an amount of around 50% and it always makes me worried so I have to check prices frequently, if there is a daily decline of more than 5% then I will sell so this makes me tormented so that I leave only 10% of assets.

Well, if you are not confident enough when investing in bitcoin, you shouldn't invest too much in it, it will give you more heartache than pleasure.
Bitcoin makes up more than 50% of my portfolio, but unlike you, I get more excited and will buy more every time bitcoin drops in price. I have never doubted bitcoin and have always been confident in my choices. I bought some bitcoins for $40k last year, but if I could wish, I still want bitcoins to fall more than rise.

[slapper]

I am curious. How many of you also stack gold and silver in addition to BTC as a hedge for inflation?

I don't, Why? the reason is simple they have less profit ratio than BTC and it's hard to secure them in person at places like mine where theft is common. but in the long run, I think BTC has more potential to give more profits rather than gold and silver, if a big pile of gold is discovered in the future it will increase the supply and will decrease the rates at the regional level (If I am not wrong). But BTC will keep its scarcity as it has a fixed supply and in the big run it will provide a main hedge against inflation plus the future is moving toward digitalization and transparency.

Old minds, controlling most of the money in this world are against moves that are in support of digitalization, so, AFAIK, total digitalization could occur around 2050 and once it will happen, Digital currency like BTC will have more potential than Gold and silver. Plus BTC has the international market to which you can access easily while you can sell your gold to a regional shop or anywhere in your country. This decreases the chance of best buying and selling while BTC is globally available and you can sell them from anywhere. The point is if the economic situation of one country like if mine, goes down then the prices will of gold and silver will be high but BTC will not be manipulated by my country's economy + there will be less buying if such a situation occurred as people with fiat will be left with less value as per there money. While in BTC, my country's economy doesn't matter and BTC will keep its prices stable even if things happen then it's an international market where demand and supply will never end instead in a single country it will be restricted.

Each to their own. BTC as an inflation shield is cool, but it's a wild ride. silver, gold? Ancient treasures that defy market fluctuations. BTC may provide short-term gains, but diversification into precious metals and other assets is best. BTC market globally? A mess. Risk tolerance matters. But I? Bitcoin resists inflation and the unknown, therefore I'll keep using it.

[jostorres]

Personally I do not have the cash to redirect to precious metals at the moment, but they are a good long term investment, also do not underestimate silver, most of the uses of gold preserve the gold, as is the case of the minting of gold coins and jewelry, however silver is such an useful metal that is used on many industrial process which make it harder to recover, this increases its scarcity and this is a key component on the potential increase of value of an asset.

Gold may have very limited use cases but it is way more rare than Silver and that is the reason why there is a huge price difference between the two. I don't say that Silver is bad, it's also good as it is a useful metal and it has a lot of use cases as you mentioned, but it's not as scarce as Gold and that is the reason why it's cheaper than it.

If I was to invest money into one of these, I would most definitely go with gold since I know and I can clearly see that the price of gold is increasing rapidly and that has been the case for the whole history of its existence.

[Razmirraz]

I am curious. How many of you also stack gold and silver in addition to BTC as a hedge for inflation?

Apart from investing in Bitcoin, I also bought a few grams of gold as a hedge, this I did nothing to do with inflation. I buy gold from the profits I get from investing in Bitcoin, the goal is that the profits I can freeze on assets that have a relatively stable value.
Selling gold is also very easy around where I live, in just 10 minutes it can be exchanged into money. While the Bitcoin that I have remains at authorized capital, if there is another opinion in real life, I will increase the investment amount if the Bitcoin price is suitable to buy.

[cydrix]

It's Bitcoin! Other alternatives as well... I've reached the point in my life when I'm considering starting a side business, and cryptocurrency seems like the greatest choice. Simply said, I believe that cryptocurrencies, especially Bitcoin, are the wave of the future. I believe we are still in the early stages of crypto, but I also believe that fresh generations will further it. Younger generations, who all seem to be interested in technology and will ultimately begin learning about cryptocurrency... After over ten years of dealing with cryptocurrency, we will run into 18–20 year old "kids" who are more knowledgeable about it than we are.

[Swordsoffreedom]

Personally I do not have the cash to redirect to precious metals at the moment, but they are a good long term investment, also do not underestimate silver, most of the uses of gold preserve the gold, as is the case of the minting of gold coins and jewelry, however silver is such an useful metal that is used on many industrial process which make it harder to recover, this increases its scarcity and this is a key component on the potential increase of value of an asset.

Gold may have very limited use cases but it is way more rare than Silver and that is the reason why there is a huge price difference between the two. I don't say that Silver is bad, it's also good as it is a useful metal and it has a lot of use cases as you mentioned, but it's not as scarce as Gold and that is the reason why it's cheaper than it.

If I was to invest money into one of these, I would most definitely go with gold since I know and I can clearly see that the price of gold is increasing rapidly and that has been the case for the whole history of its existence.

I also think that the price of gold in the coming years will continue to increase when the currency war between the superpowers, America, China, and Russia is intense, and countries are racing to hoard gold as much as possible. In the long term, this will stimulate gold prices to new ATH levels is not difficult. But to make a significant profit from investing in gold, we need to have a large amount of capital, and this is very difficult for individual investors like us. And that's also why I think people choose bitcoin over gold to invest.

[STT]

Holding gold is not an especially dynamic or performing investment, it counters inflation to some extent because dollars are measured in gold not vice versa.  There is demand for gold at present so I would expect at least price of gold to rise with inflation possibly more but its not a massively performing asset like the hopes that go with crypto also it could be said safer in some ways though not carried personally clearly.
  In the world today we have a great demand for Dollars because of how economies are arranged, gold if anything is yet to rise with demand though there are net buyers for decades now its still  a market with growth though less then crypto imo.

[South Park]

Holding gold is not an especially dynamic or performing investment, it counters inflation to some extent because dollars are measured in gold not vice versa.  There is demand for gold at present so I would expect at least price of gold to rise with inflation possibly more but its not a massively performing asset like the hopes that go with crypto also it could be said safer in some ways though not carried personally clearly.
  In the world today we have a great demand for Dollars because of how economies are arranged, gold if anything is yet to rise with demand though there are net buyers for decades now its still  a market with growth though less then crypto imo.

The problem for anyone which is thinking on investing on gold is that it can take decades before it presents an important movement, and not many people can hold their gold for that long without wanting to do something with that money, however if you are one of the lucky ones which is holding gold when it skyrockets the profits which it can give can be amazing as well, but now that bitcoin exists it seems possible this performance may not be as great as anticipated, as it possible that during that time bitcoin could also experiment an immense growth as well.

[usekevin]

Bitcoin Silver and Gold had their own supporters in the market.But why did you choose the Bitcoin Gold or Bitcoin Silver,when the Bitcoin itself still available in the market.You can split the savings into three parts,that is 40,30,30.So inverse the 40 percentage into the bitcoin,the first 30 percentage into Bitcoin Gold and another 30 percentage into Bitcoin Silver.As like the bitcoin,this silver and gold survive in the market.But if you had huge investments for the longer time,you can choose the bitcoin.

Holding gold is not an especially dynamic or performing investment, it counters inflation to some extent because dollars are measured in gold not vice versa.  There is demand for gold at present so I would expect at least price of gold to rise with inflation possibly more but its not a massively performing asset like the hopes that go with crypto also it could be said safer in some ways though not carried personally clearly.
  In the world today we have a great demand for Dollars because of how economies are arranged, gold if anything is yet to rise with demand though there are net buyers for decades now its still  a market with growth though less then crypto imo.

The thread is based on the Bitcoin gold and Bitcoin silver and not based on the physical gold,Correct me if I was wrong.If the thread discussed with the gold and bitcoin,the trader should choose the gold for the longer period then the time expectation on bitcoin pump.The next halve of bitcoin was expected next year,So many old people keep their bitcoin for the next pump to get profit in the next year.Holding of bitcoin over a year will gives you ten times of profits as compared to now.

[STT]

Always hold both I would argue, never be tempted to hold all of what appears to be moving fastest or the largest gains though thats more possible when you have little to lose in the first place.

it can take decades before it presents an important movement

Gold fell from 2011 onwards near to the end of the decade, so almost the entire time it could be skipped as any profitable asset.   I would still argue it was fair to hold as a kind of insurance or absolute fallback, the balance for gold is maybe 1% to 10% of total asset value for a person.   The correct frame work would be as a pension related asset, since you cannot reliably save plain cash for retirement gold is best kept in most peoples portfolios for at least the long term.   I think gold works in 1 decade movements and also it can taken an entire decade for a new gold mine to be established.  If there is any sustained rise in demand it would require substantial investment to return new sources of any size which is where the profits are likely to come from an imbalance.
  BTC is completely fixed in supply but is subject to greater speculation where as gold is used as a central bank asset and has been in net purchase by central banks since the start of the century even while price was falling that was true

[Cryptmuster]

The problem for anyone which is thinking on investing on gold is that it can take decades before it presents an important movement, and not many people can hold their gold for that long without wanting to do something with that money, however if you are one of the lucky ones which is holding gold when it skyrockets the profits which it can give can be amazing as well, but now that bitcoin exists it seems possible this performance may not be as great as anticipated, as it possible that during that time bitcoin could also experiment an immense growth as well.

Did you not think that one day bitcoin will also reach the same level as gold and in order to get a profit from investing in bitcoin it will also take a very long time before we see growth, and the choice of the right time to invest too will play an important role? I do not yet know of any type of asset that could show a very large increase in price over the constant time of its existence.

[Sithara007]

Did you not think that one day bitcoin will also reach the same level as gold and in order to get a profit from investing in bitcoin it will also take a very long time before we see growth, and the choice of the right time to invest too will play an important role? I do not yet know of any type of asset that could show a very large increase in price over the constant time of its existence.

What do you mean by same level? This is not an apple to apple comparison. How can you compare a digital asset, with a physical asset? The only accurate correlation that can be made is by comparing the market cap of these two assets. But even then, the market cap for gold is difficult to calculate. Huge quantities of gold is present in earth's crust, that is of low quality and therefore having little economic sense in extracting. On the other hand, we know the market cap of Bitcoin, since it is minted as per the principle of controlled supply.

[SirLancelot]

Did you not think that one day bitcoin will also reach the same level as gold and in order to get a profit from investing in bitcoin it will also take a very long time before we see growth, and the choice of the right time to invest too will play an important role? I do not yet know of any type of asset that could show a very large increase in price over the constant time of its existence.

What do you mean by same level? This is not an apple to apple comparison. How can you compare a digital asset, with a physical asset? The only accurate correlation that can be made is by comparing the market cap of these two assets. But even then, the market cap for gold is difficult to calculate. Huge quantities of gold is present in earth's crust, that is of low quality and therefore having little economic sense in extracting. On the other hand, we know the market cap of Bitcoin, since it is minted as per the principle of controlled supply.

Maybe he's referring to the adoption and stability level of gold? But gold isn't stable at all, it might not be as volatile as Bitcoin but it surely is, so technically, it doesn't take as long for Bitcoin to generate profits as it takes gold since it grows gradually. The only big difference between the growth of these two is gold's price doesn't crash as much as Bitcoin's.

So someone who invests in Bitcoin might see their money going down for a while and then going up again later on, while if you are invested in gold, you will simply see a gradual growth which might be slow but is authentic.

[Freddie Boyer]

I am curious. How many of you also stack gold and silver in addition to BTC as a hedge for inflation?

One more don't forget  OP, is the Dollar. Gold, silver and Bitcoin have all traditionally been seen as safe havens during times of inflation, the US Dollar has also historically played a role in protecting against inflation. So whether it's gold, silver, Bitcoin or Dollars, make sure you have a balanced portfolio to weather any economic storm and their fourth Lovebird.

[Litzki1990]

Right now I have some BTC and some gold stockpiled. Gold I have stored in such a way that I will never sell my gold because I got this gold as a gift and I don't want to sell these gift items. But I have some plans around the amount of bitcoins I have stockpiled. I hold my bitcoins for a certain period of time and when the certain time comes or my target is met I will sell my bitcoins.

[yohananaomi]

I am curious. How many of you also stack gold and silver in addition to BTC as a hedge for inflation?

One more don't forget  OP, is the Dollar. Gold, silver and Bitcoin have all traditionally been seen as safe havens during times of inflation, the US Dollar has also historically played a role in protecting against inflation. So whether it's gold, silver, Bitcoin or Dollars, make sure you have a balanced portfolio to weather any economic storm and their fourth Lovebird.

all clearly do not doubt it as friend above said, especially very important in avoiding inflation situations that will occur. but there will be a difference in the value that will be obtained in the end when made into deposits, especially for the long term, it is clear that bitcoin will be superior compared to the others. but in the end everything is returned to the individuals who will indeed do it because it is equally good to be stored and developed in due time.

[gaston castano]

Gold, silver, and BTC are all considered by some as hedges against inflation, but they have different characteristics and potential risks. Gold and silver have been used as stores of value for centuries, and their value tends to rise during times of economic uncertainty or high inflation. BTC, on the other hand, is a relatively new asset that has gained popularity as a decentralized digital currency and store of value.

[Paul Pogba]

As investors we have to be smart, don't just rely on 1 or 2 types of investments, placing money in many types of investments is the best and safest step so that you can get profit, and gold is of course a very good and safe investment because everyone can receive gold.