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Best way to store your wealth: Crypto, Fiat or Precious Metals?  


Bingran Lu
Posts: 16
(@bingran)
Active Member
Joined: 2 years ago

As the trade war rages on, the Yuan continues to depreciate, eating away at the accumulated wealth of the Chinese people day by day.

With the adoption of cryptocurrency nowhere near in sight.

Could precious metals be a good option to store value?

Given the global instability and looming recession, how will you store your wealth? 

 

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Hassan El-Essawi
Posts: 7
(@haasssan-e)
Active Member
Joined: 2 years ago

I find any portfolio would benefit from a mix of assets. Storing everything in precious metals exposes one to a variety of risks ranging from price to operational risks depending on the nature of the investment. Likewise storing all of one's wealth in a single currency leaves the portfolio susceptible to inflation risk, exchange rate, etc. I would argue that any cryptoasset would be too far removed from a value-generating asset to compose the majority of a portfolio. As a result, I don't find there is a "Best" way to store one's wealth, rather people are better off assessing their personal financial goals, the markets they'd like exposures too, and the risks they'd like to mitigate, and construct a portfolio based off these guidelines. If you'd construct this for the majority of people, you'd find many are better off investing across asset classes to lessen the impact of some of the risks you mentioned such as inflation and volatility.

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