Previously I have discussed the performance comparison among the value of the traditional assets stored by some top stock such as S&P500, Gold, Oil, and BTC in 2022 where Gold has shown the best stable growth for the last half of the year. The full post can be read here. And Gold has continued its bullish momentum by hitting the 6 months record! As of now, it is being traded around the 1845 level where the previous All Time High was around $1,849.89 on June 17, 2022. The reason behind the bullishness of the gold price is the increasing fed funds rate and the concern of the upcoming recession is still affecting the economy. And as a result, investors are finding the best place for the safety of their funds and Gold is a great option without any doubt. Gold has proved itself to be one of the most attractive assets with abundant liquidity options throughout the world with a long history of successful asset category! While gold is seen as an A+ class of asset against economic uncertainty, it tends to lose appeal in a high interest-rate environment. But the situation is not coming soon.
If the minutes reveal that the U.S. central bank is considering slowing the pace rate hikes and ending the hiking cycle at a lower peak rate, there will be "scope for further increases in the price of gold", said Ricardo Evangelista, senior analyst at ActivTrades.- reuters
Another evolving asset is the digital asset which attracted millions of people when BTC hit $69K! In recent years, the concepts of an asset have evolved even further. Cryptocurrencies and digital assets like Non-fungible tokens (NFTs) stored on blockchains are growing in popularity among the young generation. They are increasingly becoming a part of established portfolios, as well as attracting a new market of retail investors into the space as it is very easier to enter into this area and these assets offer some amazing facilities like easily transferable and security with anonymity! Though cryptocurrencies were considered a risky bet but increased regulatory scrutiny in established jurisdictions is being imposed by the government like in El Salvador, India, China, and many countries which leads to the flow of institutional capital moving into the sector. In the future, technological advancement will reform the sector without any doubt. No one thought a decade before that some lines of codes will be sold at a price as now the tokenized businesses are on the verge of the way to enter! Blockchain technology has changed the concept of assets in the real world. The metaverse and augmented reality will bring more virtual assets which will be traded for value in the upcoming future.
But unfortunately, the price of Oil and BTC has shown a great winter in their movement and even now after the post-Covid-recovery period, the Price of the assets such as stocks and Oil is in the downtrend. And unlimited FUDs are making digital assets die very fast. Most of the cryptos are suffering more than the BTC dumped and the market is still in great fear and people are getting out of it! Though these are the normal movement of any market the situation needs to be changed sooner than later to initiate positivity in the market.
In conclusion, Gold is King whatever the market situation and the economic condition. And for digital assets, they have too much uncertainty with the fear of a bubble and no governmental assurance of the value which is still to evolve in the right direction!
What are your thoughts on your asset management strategy, let us know in the comments. And thank you a lot for your time and attention in reading my post. I will catch you at the next.
Have a great day!
