Given the statements coming from central banks around the world that we have seen above, it is no surprise that they are not buying cryptocurrencies. And what do they buy? Gold. They are currently committed to buying gold at a record pace.
Many would point out that central banks and their agencies, commercial banks like JPMorgan, have been suppressing the price of gold and silver for years. It’s clearly not suppressing that of cryptocurrencies, just yet. They find it convenient for commercial investors to buy cryptocurrencies, but not precious metals.
Why? Perhaps because they are using cryptocurrencies as precursors to pave the way for digital money created by the central banks themselves, and because they plan to phase out cryptocurrencies in the future.
During this time, gold and silver have been the best form of trade since time immemorial, and banks choose to hold a large portion of the existing quantity. For example, JPMorgan has the largest volume of physical silver in the world. And the bank doesn’t buy anything unless it believes it will make a profit on it, and usually a significant profit. When gold and silver prices rise, the big banks stand to make billions, if not trillions, of dollars.
As far as ordinary people like us are concerned, physical gold and silver offer a way of investing that cannot be tracked online, is done outside of the banking system, carries no risk and, if in coin form, is considered a means of legal tender almost everywhere. In addition, gold and silver are the ultimate form of store of value.
The problem of physical storage of silver and the challenges of cross-border transportation pale in comparison to the benefits that the positive qualities of the physical metals mentioned above bring. Today, they are some of the most undervalued, if not the most undervalued assets on Earth. That’s why Smart Money is buying more and more gold and silver. At the same time, they are already preparing the framework for a global cryptocurrency strike.
Bottom line, if you focus on the short-term (1-2 years) selling profits, there is a high probability that Bitcoin will rise to over 100,000 before it falls all the way to extinction. Profits from other cryptocurrencies can be even higher.
The problem is that the drive in this sector borders on fanaticism, with some proponents of cryptocurrencies believing so strongly in them that they will never sell them. The end of this story can be tragic, especially for many cryptocurrency millionaires and billionaires. I hope I’m not entirely right about this.
But if you invest with a long-term view, there is no better alternative than physical precious metals – they are the best saviors of purchasing power in times of crisis . Gold rose 60% in the 1930s as stock and real estate prices fell. Gold rose 24 times in the 1970s and silver 36 times. Gold has increased eightfold since the beginning of the 21st century, and silver has increased twelvefold. Follow Smart Money.
The rally in precious metals and the companies that mine them is just beginning and will last for years. Given the record amounts of fiat money being printed, if history teaches us anything, the profits will be huge, especially in real terms.