We live in an age where investing is not as hard as it once was. While there was a time when you could
only make money by investing in company shares and bonds, you now have options like precious metals
and cryptocurrencies as well.
Both options are great, but investors find themselves at a crossroad when deciding which of the two
instruments to invest in. Such doubts have been manifesting quite a lot recently with the increase in the
value of the various cryptocurrencies in the market. The question remains, which investment is better?
Why Choose Precious Metals?
There are two major reasons why some of you might be inclined to invest in precious metals rather than
Firstly, precious metals, which mainly include gold, silver, platinum, and palladium, have witnessed quite
a steady growth in the past few years. There haven’t been any sudden hikes or declines. This stability
makes precious metal a comparatively less risky investment.
Furthermore, it acts as an insurance when the bad time comes. One way that precious metals are
different from most other financial instruments, whether it be bonds, shares or cryptocurrencies, is that
it is tangible. Just like dollars or other currencies, you have an asset that you can store in your vault and
use during the bad days. With cryptocurrencies, you don’t have that tangible asset to hold onto which
might be detrimental when the next financial crisis strikes.
Why Choose Cryptocurrencies?
Those who are in favor of cryptocurrencies also put forward a strong case. The majority of their
argument revolves around the recent success of the currency in the market. Although cryptocurrency
was met with distrust by investors initially, the recent increase in its value has showcased the potential
it has. Since cryptocurrencies remain largely decentralized, the profits earned through it are high.
Moreover, some people propose that as this digital currency becomes more popular, it might seep into
normal usage and transaction as well. While we are already beginning to see the potential of the
currency to do so, if it is to become a mode of transaction, it might be an excellent asset to have.
Which Is Better?
This debate is never-ending and may not have a definite answer. This is because it all depends on why
you are investing in the first place. Different people have different opinions, but if you were to ask us,
the risk-free, cautious side of me will tell you it is always better to go for precious metals.