“How to invest and not lose?” It is the eternal question that every potential investor have. There are choices available today where you can invest money, but not all will yield the promised return. One of the most popular investment assets is considered to be gold and trading BTC (primarily bitcoin). How expensive are such investments in 2022, what are their pros/cons, and what is the best way to invest funds – we understand all this in the review.
Gold is among the most well-liked financial assets
Gold has always attracted investors with stability and prospects. Today, there are several ways to invest money in this precious metal:
- Purchase of bullion in banking institutions;
- Purchase of gold coins;
- Stock trading;
- Investments in jewelry.
Benefits of Investing in Gold
This precious metal has always been considered one of the most reliable investment assets. Gold does not give such a high yield as, for example, many cryptocurrencies. But the risks of such an investment are minimal. Any trends in the gold market are predictable and change extremely slowly, which allows investors to react to changes in time and stay in the black. In addition, we can distinguish other advantages of the precious metal:
- Regular growth of quotations. The price of this asset, albeit slowly, but, as a rule, always grows;
- Independence from crisis situations both within the country and around the world. Whatever happens – war, natural disasters, a pandemic, a global economic crisis – gold will not lose its relevance and will always be in price.
Gold forecasts for 2022
During the period of market instability caused by the coronavirus pandemic, gold has skyrocketed in value. For example, in 2020, its quotes reached their historical maximum – $ 2,067 per ounce. The fact is that most investors actively invest in this “protective” asset when some fluctuations begin in the financial market. This explains the rapid growth of its price. Among the key factors that may affect the growth of the value of gold in 2022, experts highlight:
- Inflation of the dollar (the cheaper this currency is, the more expensive the precious metal);
- High demand (it was predicted that in 2021 it will continue to grow, as in 2020, therefore, most likely, the price of this asset will also increase).
However, certain types of risks are also associated with it. First of all, they are associated with a glut of the market. The fact is that today more gold is mined than sold, so an overabundance of this precious metal can provoke a stop in the growth or even a drop in prices.
What are investors afraid of gold?
Along with the advantages, there are several disadvantages of this investment option. Most often, it is associated with such risks:
- The probability of a sharp collapse of the rate (this is again caused by the high volatility of bitcoin); So, if you prefer short-term investments, gold is definitely not what you need;
- The complexity of mining (today this requires special equipment), in connection with which the payback period of investments in farms is reduced;
- High risk of fraud when buying, exchanging and selling bitcoin.
A decrease in the value of assets for an investor can be a profitable entry point. However, it is equally important to decide which area to choose for long-term investments, for a period of 5-10 years.
The advantages of investing in BTC
This cryptocurrency attracts the attention of most investors as it has several advantages:
- Huge earnings in the shortest possible time (due to the high volatility of bitcoin, its holders can get rich literally within 1-2 days);
- Passive income (while investing in this cryptocurrency, there is no need to do anything additional.);
- High liquidity;
- Relatively low commissions for transactions with cryptocurrency.
Conclusion
Both gold and bitcoin have their pros and cons. When you are interested in short-term investments, it is better to use Bitcoin. What to invest in 2022 is up to you. The main thing is to decide what goals you set for yourself, carefully analyze the market and monitor all changes. People are now trading under the El Sitio Oficial site.