Precious Metals versus Cryptocurrencies

Good Morning Ladies and Gentlemen

My last Stefan’s weekly on cryptocurrencies versus fiat currencies led to questions, suggestions and speculations. Many thanks, Ladies and Gentlemen, for your active participation in this.

Cryptocurrencies

One question that came up many times was if I could imagine Bitcoin going up to its former highs again. Quite frankly, I can imagine many things, also that the price for Bitcoin and other cryptos increases to or even above its former highs. Generally, the networks created over the blockchain can be of great use not only for transferring money and/or alternative currencies. However, as I mentioned last week, there are significant risks in the crypto space, which is why I do not invest in it for the time being.

Precious metals

Precious metals are, of course, and like cryptocurrencies, another non-productive asset class not producing any cashflows. Nevertheless, I feel much more comfortable holding gold and silver than cryptocurrencies. First of all, they are tangible and second of all, the concept of storing value in them, with all the sometimes extreme volatility we have experienced over the last decades, has been proven for thousands of years.
Maybe it is because of my age, or maybe it is because of «In Gold We Trust».

In gold we trust

Admittedly, Ladies and Gentlemen, I have a bias regarding precious metals. After all, we are the producers of the «In Gold We Trust» report, which is much more than a study about gold. It explains economic contexts and offers reasonably independent opinions on today’s economic and monetary policy facts. Thanks to the many graphic representations, complex issues can sometimes be conveyed uncomplicated, straightforwardly, and concisely. For our long-time readers, it builds on existing knowledge and develops it further. Nevertheless, the individual chapters are self-contained and can thus also provide new readers with a relatively easy introduction to the respective topic, and best of all, it can be downloaded for free directly from ingoldwetrust.report – Incrementum. For those who have not so far, check it out.

What I do not hope for

I was asked the following: «When the dust has settled, the smoke has cleared, all the asset bubbles burst, the U.S. and World Debt Clocks explode, gold prices finally reach $50,000 per OZ, and silver reaches $5,000 per OZ, what does that world look like?» I receive similar questions from different people from time to time, and my answer to those is always the same: «Not a very friendly environment. Large-scale civil unrest would probably be a consequence. Let us hope this will never happen. Not an environment I would like to live in.»

Ladies and Gentlemen

As always, please share your opinion with me, but please remember (instead of hitting the reply button) to send your messages to: smk@incrementum.li.
Many thanks, indeed!

I wish you an excellent start to the day, a great weekend, and a wonderful Advent season.

Yours truly,

Stefan M. Kremeth
Wealth Management
Incrementum AG – we love managing assets

Tel.: +423 237 26 60
Cell: +41 79 303 48 39
Im alten Riet 102
9494 Schaan/Liechtenstein
Mail: smk@incrementum.li