Precious Metals Vs Bitcoin: A Comparison

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The term "Precious metals" can be attributed a vast many different types of metals. Metals that hold certain properties, and thus make them valuable and sort after. While most people think of gold as there go-to precious metal investment, a lot can be said for its baby brother SILVER. With the current run in #bitcoin, can I just remind everyone thinking of betting the house on it, that sometimes slow and steady will win the race. So why is silver actually better than bitcoin....? Is it though??

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Silver and Bitcoin are both valued as investments but they have different characteristics that make them suitable for different purposes. Silver has been used as a store of value for thousands of years and is widely accepted as a form of currency. Thats not to say im taking anything away fromm the crazy life of the "king of crypto". Bitcoin has shown over this past decade that it DOES have a place in a modern society not only as a speculative investment, but a smart one.

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Silver is used in many industrial and medical applications, which can affect its value. Bitcoin, on the other hand, is a digital currency that is decentralized and operates on new technology called a blockchain. Silver is often seen as a hedge against the impeding inflation and a way to store wealth outside of the traditional banking systems. Bitcoin is also relatively new and more volatile, which means timing the markets for short term gain can be tedious and treacherous all at the same time.

Silver is a more established and stable form of value, while Bitcoin is a newer and more speculative investment. So I suppose is it long term generational wealth youre after or "to the moon" and Lambos??

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This is why I believe silver coins and bars are an essential part of a diverse portfolio. First and foremost, as i mentioned earlier, they serve as a hedge against inflation. The value of paper money, also known as fiat currency, is often tied to the health of the economy and can fluctuate greatly and at a press of a button. However, the value of silver has historically held its value over time, making it a reliable store of value.

Another reason to include silver coins and bars in your portfolio is their liquidity. Silver coins are easily bought and sold, making them a convenient option for those looking to liquidate their assets quickly. Additionally, silver coins are widely recognized and accepted, making them easy to convert into cash when needed. The relatively cheap entry point of a silver coin and/or bar is a major plus point for an investor looking to get their feet in the door of precious metals.

Silver coins also offer the potential for capital appreciation. The price of silver is affected by supply and demand dynamics, as well as industrial and technological advancements. As the demand for silver increases, the price of silver coins can also increase, providing an opportunity for growth in your portfolio.

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With thousands of designs out there, the price of a coin can also drastically increase from several collectable factors. Is it aesthetically pleasing? Does it have a low mintag? Has the design been phased out and replaced by another?? All these things and more should be taken in to consideration when buying silver coins/bars for investing purposes.

Finally, silver coins are a tangible asset, meaning that they are physical and can be held in your hand. This can provide a sense of security, especially in times of economic uncertainty. When the lights go out, and power becomes harder to com by, try plugging your hardrive in and seeing how easy it is to access your bitcoin then.....

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In conclusion, silver coins are an essential part of a diverse portfolio as they serve as a hedge against inflation, are liquid and easily traded, offer potential for capital appreciation and are a tangible asset. It is important to remember that silver coins should be just one part of a well-diversified portfolio, alongside stocks, bonds, cryptocurrency and cash.

THIS IS NOT FINANCIAL ADVICE and you should always consult with a financial advisor before making any investment decisions.

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