With the financial markets in turmoil and increasing talk of another global recession looming large on the horizon, investors are beginning to look at other investment opportunities for their wealth. Shares and bonds are not as safe as they once were and many savvy investors are moving their money into other investment vehicles such as gold and bitcoin. So which is likely to be a better choice for 2016?
The Importance of a Stable Investment
Stability is crucial. Nobody wants to lose their money in a cataclysmic stock market crash, but if you invest all of your savings in bonds or currency, this is exactly what could happen. For this reason, it is wise to consider other investment opportunities so your wealth is protected if the worst does happen.
Why Choose Gold?
Gold is widely regarded by many as a more stable investment vehicle because it isn’t linked to any other assets, but it isn’t perfect by any means and the price of gold can be volatile. At the height of the last economic recession, the price of gold hit the heady heights of $2,000 per ounce, but two years later, it fell by more than 27%.
However, despite its volatility, gold prices have shot up in recent months as investors rush to invest in physical gold. The greater the demand for gold, the higher the price will rise. Prices have risen by an astonishing 16% this year alone, and if expert predictions are correct, this trend is set to continue for the next few months.
What is Bitcoin?
Bitcoins are a relative newcomer in the investment market. It’s a virtual currency rather than a physical commodity you can hold in your hand. Bitcoins are an electronic payment system, created by an internet community and based on a mathematical protocol. No central institution controls bitcoins, so nobody can take them away from you, which makes it an attractive proposition for investors. Bitcoins won’t lose their value if the world financial markets crash or major banks implode. The other advantage of bitcoin is that you can transfer it across borders.
On the face of it, investing in bitcoin seems like a win-win scenario. It certainly has many advantages as an investment vehicle, but in the wake of several high-profile hacks, experts have raised serious concerns about the security of bitcoin exchanges.
Take Investment Advice
Bitcoin is gaining ground in the financial world and as the markets continue to flounder, many investors are increasingly turning to bitcoins as a safe investment vehicle for their wealth. That said, there are still plenty of reasons to invest your money in gold, and as an investment, gold is highly unlikely to fall out of favor any time soon. Sites like Global Intergold can also help you to invest with ease.
Both commodities have their pros and cons and it is important to make your investment decision based on your most immediate needs. Bitcoin and gold are both likely to surge in price over the coming year, so take advice and make a judgement based on your current risk profile.