At one point in December, Bitcoin rose 25 percent in only 48 hours, stunning investors and leaving many baffled. That took the value of a single Bitcoin past $15,000, far above any peak investors had predicted. It also poses a quandary for Bitcoin itself – the volatility has made it much harder to use as a currency for some. Here’s a classic example: the very first transaction using the cryptocurrency occurred in 2010, when a Florida man paid 10,000 Bitcoin for a pizza delivery. That 10,000 Bitcoin is, at the time of writing, now worth $150 million, and a single coin is worth enough to trade for a new car. You can make purchases with fractions of Bitcoins, but high volatility and steeper fees have also led many of the digital companies that initially accepted Bitcoin to stop, including gaming platform Steam.
While some companies have been abandoning Bitcoin as a currency, gold dealers like us have just started accepting Bitcoin and cryptocurrencies like Bitcoin Cash, LiteCoin, and Dash. You even get a 4% cash discount when you buy gold or silver bullion from Silver Gold Bull with Bitcoin or another cryptocurrency.
What’s obvious is that Bitcoin is no longer the cryptocurrency its founders imagined and now trades like precious metals – silver, to be precise, which shows the same kind of volatility. Anyone who watched the commodities boom of the 2000s will also suspect that Bitcoin will head back down – but no one quite knows when. So, what are you supposed to do with your Bitcoin to avoid the crash? It’s time to learn how to invest in silver and gold with Bitcoin with a few quick tips.
About 10 to 20 percent of any investment portfolio should be in silver and gold. But don’t just buy it all at once and call it a day. When Bitcoin rises, its share of your portfolio increases in dollar terms (sometimes rapidly), which means it’s time to sell some of it off and invest the proceeds in alternatives like stocks or silver and gold. Why sell Bitcoin when the price keeps going up? You’re protecting yourself from the collapse, especially with investments that demonstrate long-term stability like silver and gold bullion.
If you’re an investor, buy bullion and nothing but bullion. Bullion has lower premiums than jewelry or numismatic coins, and it’s safer than buying ETFs (no third-party risk or risk of short selling). Silver and gold are investments you lock in the vault (you can get your own allocated storage from us at Silver Gold Bull) and hold in your hand, as there are number of concerns regarding ETFs and the physical supply of gold and silver, not to mention their fate in the event of a financial crisis.
In addition to silver and gold coins and bars, at Silver Gold Bull we also sell a number of collectible coins and our collectibles make great gifts, plus they have the real value of precious metal in them. But if you’re buying precious metals as an investment, stick to bullion coins and bars.