Home › 6a) Gold & Monetary Metals › 6a.) GoldCore › Why we couldn’t be happier that gold is boring
Permanent link to this article: https://snbchf.com/2022/08/flood-why-happier-gold/
Donate to SNBCHF.com
Donate to SNBCHF.com Via Paypal or Bitcoin To Help Keep the Site Running
Please consider making a small donation to Snbchf.com. Thanks
Bitcoin wallet: bc1qa2h6hgd0xkuh7xh02jm5x25k6x8g7548ffaj3j
Receive a Daily Mail from this Blog
Live Currency Cross Rates
On Swiss National Bank
-
USD/CHF stays above 0.9100 nearing the highs since October
12 days ago -
SNB Sight Deposits: increased by 3.4 billion francs compared to the previous week
2 days ago -
Pound Sterling falls back as upbeat US Retail Sales strengthen US Dollar
12 days ago -
Canadian Dollar remains vulnerable after strong US Retail Sales
12 days ago -
2024-04-09 – Martin Schlegel: Interest rates and foreign exchange interventions: Achieving price stability in challenging times
18 days ago
Main SNB Background Info
-
SNB Sight Deposits: increased by 3.4 billion francs compared to the previous week
2 days ago -
The Secret History Of The Banking Crisis
2017-08-14 -
SNB Balance Sheet Now Over 100 percent GDP
2016-08-29 -
The relationship between CHF and gold
2016-07-23 -
CHF Price Movements: Correlations between CHF and the German Economy
2016-07-22
Featured and recent
-
10 % Dividende bei dieser Aktie!
-
Brisante Wendung bei Maximilian Krah!
-
Fliegen wird teurer! #Luftverkeherssteuer
-
NEU im Finanzfluss Copilot: 2FA, Import für Bison, Parqet, CSV + PDFs & viele weitere Features!
-
Illner völlig am Ende!
-
Warum Deutschland wirklich versagt – Geschichte – Hintergründe
-
NZDUSD holds resistance against 50% retracement this week and rotates lower. What next?
-
Did the MMT Camp Correctly Predict the Post-Covid Economy?
-
Special Episode: Unpacking the Trump Legal Saga – Kim Kiyosaki, Mike Davis
-
Word of the Day: Performative
More from this category
- Did the MMT Camp Correctly Predict the Post-Covid Economy?
26 Apr 2024
- Word of the Day: Performative
26 Apr 2024
- Help Us Publish These Three New Books
26 Apr 2024
- Low Time Preference Leads to Civilization
26 Apr 2024
- Opposing Military Intervention: Loving Dictators or Hating War?
26 Apr 2024
- Retail Sales Data Suggests A Strong Consumer Or Does It
26 Apr 2024
- What Is the Purpose of Economic Theory?
26 Apr 2024
- Kentucky Becomes 45th State to End Sales Taxes on Gold and Silver
25 Apr 2024
- Javier Milei vs. the Status Quo
25 Apr 2024
- Saving in gold is the only reliable way to save
25 Apr 2024
- The Problem with Microlibertarianism
25 Apr 2024
- Why the West Is Giving Up on Individual Rights
25 Apr 2024
- The Danger of the West’s Neglect of Individual Rights
25 Apr 2024
- SNB returns to quarterly profit thanks to Swiss franc weakness
25 Apr 2024
- Increase of 1.7% in nominal wages in 2023 and 0.4% decline in real wages
25 Apr 2024
- Woods Exposes the Federal Reserve System
25 Apr 2024
- Driver’s Licenses Waive Personal Responsibility and Contribute to Disorder on the Road
24 Apr 2024
- Privatize Driver’s Licenses
24 Apr 2024
- Chapter 12. When It Comes to National Defense, It’s More than Size that Matters
24 Apr 2024
- Chapter 10. If California Secedes, What Happens to Locals Who Opposed Secession?
24 Apr 2024
Why we couldn’t be happier that gold is boring
Published on August 23, 2022
Stephen Flood
My articles My videosMy books
Follow on:
But then what? There aren’t any major price moves, it’s not like you see any huge crashes or major leaps to keep you on your toes, not like with crypto.
But, as you’ll read below, boring really is the best way to be. Well, when it comes to investments that is.
Gold V/S Crypto
The gold price is hovering around US$1,800 per ounce, where it has averaged since the beginning of 2021.
Your feelings about the gold price likely are similar to ours: gold has been boring compared to stocks and crypto.
Since the beginning of last year the gold price, with the exception of a rise of around 14% when Russia invaded Ukraine (note that the safe-haven demand due to the invasion which resulted in this rise was in contrast to the decline in cryptocurrencies and equity markets), has oscillated around 5% of the average just over US$1800.
.
Equity markets have had swings in the middle; more swing than physical metals but less swing than Bitcoin, oscillating around 20% from their respective averages since 2021 began.
The above shows the store of value of gold and gold’s low volatility. Both qualities help to stabilize an investment portfolio in times of turmoil.
Therefore, no matter how “boring” gold has been in recent months – the alternatives have had worse performances.
Adding to the store of value is the fact that counterparty risk is avoided by holding physical metals. This factor has gained importance versus paper contracts and versus investing in cryptocurrencies of late.
.
Versus paper contracts:
This is a follow-up to our July 14 post titled Gold traders on trial: Only buy physical where we discussed the trial of former JP Morgan traders for manipulating trades.
Last week the traders were convicted on charges of fraud, spoofing, and market manipulation of markets for more than a decade.
The oversized position of JP Morgan in the futures market gave the traders the power to move prices and manipulate the worldwide price.
The criminal case against the former JP Morgan traders is only one example of many scams and manipulation of markets.
And this example shows manipulation in regulated markets, while the scams in cryptocurrency markets are even more blatant and expensive.
Versus investing in cryptos
The second point is growing cryptocurrency scams. One of these scams is called a digital ‘rug pull’.
According to cryptowallet.com: A rug pull is a term used in the crypto community to refer to cryptocurrency projects that turned out to be exit scams.
A rug pull is said to have occurred if the developers of a crypto project abscond with investors’ money.
There are several types of digital rug pull in the crypto space, which include a form of Ponzi scheme where the project manager convinces investors to buy specific crypto and then flees with the funds.
There are also cases where the head of a crypto exchange claims the exchange has been hacked and then takes off with the assets in the exchange wallets. The prevalence of ‘rug pulls’ is growing and there have been digital ‘rug pulls’ every month so far in 2022.
Chainalysis reports the total loss to scam victims was over $7.7 billion worldwide in 2021. The chart below from chainalysis.com shows the estimated total value of scams from 2017-2021.
Total Yearly Cryptocurrency value received by scammers, 2017-2021 ChartIt is important to recall that emotions and exciting movements can cause trouble for investors.
Therefore boring is beautiful … investors hold onto boring investments far longer than the next new creation, which could turn out to be a scam or decline significantly after a ‘bubble’ run-up in price.
The store of value of gold has been demonstrated repeatedly. Long-term investments give better results because they are easier to buy and hold…which makes boring investments into better investments.
All of this reinforces our belief in physical metals and that is why Goldcore stays true to the physical metals.
Next week we will be interviewing Jim Rogers on GoldCore TV. Recently Jim issued some stark warnings about cryptos and security.
For Jim, right now is a great time to own precious metals, and he recommends we all buy silver. Make sure you are subscribed to GoldCore TV so you don’t miss it!
If you can’t wait for Jim’s interview then why not head to GoldCore TV now for a new offering, a dinner party with Jim Rickards, Marc Faber and David Morgan. If you’ve ever wondered what Marc Faber’s biggest investment regret is, or maybe what books Jim Rickards would recommend then now is your chance.
.
Follow on:
No related photos.
Tags: Commentary,Economics,Featured,Geopolitics,Gold,gold and silver,gold forecast,gold price,gold price prediction,gold price today,Gold prices,inflation,News,newsletter,Precious Metals,silver,silver price,silver prices,Stock markets