Bullion vs Cryptocurrency, Investing in alternative assets is a smart strategy for anyone who wants to beat the crowd. Following the market isn’t necessarily a bad idea. If you don’t have the time, knowledge, or risk tolerance to make your own investment decisions, putting your savings into a mutual fund and forgetting about it can be the most effective way to grow your wealth. However, it also means that your savings will likely rise and fall with the market, including downturns.
Beating market averages is one of the toughest things to do, but alternative assets allow you to outperform average and weather the challenge of market crashes. Alternative assets include investments like commodities, private equity, REITs and real estate, and hedge funds.
This article will focus on two alternative assets that are easy for individual investors to acquire and that don’t require a large minimum spend: bullion vs cryptocurrency. Investing in bullion can be as simple as going to a bullion dealer like Global Bullion Suppliers and buying investment-grade gold or silver. Cryptocurrencies can also be easily acquired using a digital exchange.
Is Investing in Cryptocurrency a Good Idea?
In 2024, Bitcoin reached a price of $100,000, the highest benchmark the asset had seen – ever. However, Bitcoin and cryptocurrency, more generally, have become synonymous with boom and bust cycles. Bitcoin is an incredibly volatile asset, and there is no predicting when prices will correct.
The disadvantage of investing in cryptocurrency is the uncertainty. Bitcoin has a high growth potential, and its historical prices have proven that. Other upsides of Bitcoin are rising institutional interest, with a growing number of major financial firms exploring possibilities such as Bitcoin Exchange-Traded Funds and decentralization from traditional financial systems.
It also comes with major risks, and it’s possible to see your investment go up in smoke if you buy at the wrong time.
Outlook for Bullion in 2025
When it comes to bullion, there are several benefits that you get, particularly from gold:
- Low volatility: Gold is a great option for investors who are risk-averse. While no asset comes with any guarantees, gold is known for being a stable asset with long-term stability.
- Inflation hedge: Inflation has done a lot of damage to consumers’ purchasing power and the value of their investments. Investors who are still concerned about the potential for inflation to rise again can protect their savings by investing in gold.
- Accessibility: Bullion is easy for investors to purchase. All you have to do is buy directly from a bullion dealer.
When it comes to downsides, the main risk that comes with gold is the limited growth potential. Stability typically comes with a cost, and that is the relatively low ceiling on growth. That limited growth can also be an issue when you consider the costs that come with gold ownership, including secure storage and insurance. That said, bullion provides a level of peace of mind that few other alternative assets can deliver.
In the debate between bullion vs cryptocurrency, the answer lies in your own personal investment needs. Do you already have a relatively conservative portfolio that needs an injection of high-risk, high-reward potential? Or do you have a portfolio that’s highly exposed to market downturns and needs an alternative asset that protects you? Answering those questions will help you decide how to invest.
