Cryptocurrencies and Precious Metals - Investing in Alternative Markets FREE Guides

With the recent economic turbulence in the United States and the potential political chaos in Europe, many people are turning to investments in the precious metals sector. In fact, nearly half of all American adults now invest in alternative investments, according to the survey from last fall. Investing in the stock exchange is certainly appealing, but recent financial market volatility might have scared many investors away and moved them into other investment strategies. One of the primary reasons that American investors have turned to alternative investments in the past decade is to diversify; where ever more than 4% of the population (44%) now prefers alternative investments for their investment portfolios.

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Investing in the precious metals sector is an attractive alternative as well. Gold, platinum, and silver are widely recognized as both a hedge against inflation and deflation, which can both hit the economy very hard. Additionally, gold and silver prices have been increasing steadily for the last two years, while other investments have declined. This makes gold and silver assets ideal for long-term investments. In addition, there is also a high degree of liquidity with these assets, which makes it easy to trade and quickly obtain them if needed.

On the other hand, investing in the Cryptocurrency markets poses its own set of risks. Unlike traditional stocks and bonds, in which a company's value can be easily predicted based on public information, the prices of Cryptocurrencies are not known until they reach a high point. When this happens, the value of the asset is determined by the supply and demand forces among users worldwide. As Cryptocurrencies are traded across numerous exchanges, rapid fluctuations in the market can affect the value of each Cryptocurrency.

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As the benefits of Cryptocurrencies and the benefits of agriculture investing are similar, both are attractive to investors who prefer to have a hands-on approach when it comes to their investments. However, the differentiation between the two is the ease at which the two can be purchased and sold in most parts of the world. In addition, investors who are interested in investing in Cryptocurrencies or those who are looking to buy agricultural produce shares will have no problem doing so. The major difference between the two assets lies in the methods of sale and distribution. With Cryptocurrency investments, the investor will be buying the asset at a given price, while with agricultural produce, the investor will be distributing the crops that he or she has purchased.

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However, both investments, unlike stocks, cannot be purchased or sold at a whim. Like gold, the supply of Cryptocurrencies is limited, while agricultural products like crops are not. Both also face long-term inflation, which may take a toll on their value over time. While the supply of Cryptocurrencies is limited, the supply of agricultural commodities is increasing. Therefore, both are investments that will experience significant long-term inflation, but with Cryptocurrencies, this is largely due to the fact that there are not as many users globally who wish to purchase them, so their value will increase more rapidly as compared to the ones for agricultural products.

Many investors do not like investing directly in tangible assets because they feel as though they have little control over the way the money would be used. However, with agricultural commodities, this is largely not the case. The land and the resources that are used to grow the crops are all owned by the government, so the farmers have little to lose when it comes to the value of their investment. It is much easier to ensure that one's money does not lose value due to inflation, and with Cryptocurrencies, even when there are shortfalls in the market, an investor can ensure that he receives the full amount owed to him in case of an unexpected decline in the value of the Cryptocurrencies. For this reason, investors in Cryptocurrencies are generally more comfortable with investing in shares and other common stocks. Although Cryptocurrencies offer a bit more risk, many investors remain optimistic about the future of Cryptocurrencies and believe that they will soon overtake agricultural commodities as the largest source of growth in Cryptocurrency.

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