This is a topic that is always in my mind and should be in yours too, if you want a good future for yourself. Storing value is important and not as easy as some think, if you want the best result.
Photo by Ahmet Kahveci on Unsplash
Ever since the current, or should I say the newest war started, I've been keeping an eye on things you can store value in or with, to see how their value reacts to Geo-political changes. It gives you an indication if your strategy is good or bad and also presents some opportunities to fine tune, or change your plans in the future.
Photo by Nico Knaack on Unsplash
Today I'm going to try to show you how they reacted during the current war, which is far from over.
Photo by Sébastien Lavalaye on Unsplash
Let's start with Gold as precious metals and gold in general has been knows, or thought to be the safest and best store of value for so long.
This is the daily tokenized Gold chart. I marked the day the current war started. You can see gold hit $5470 and then literally sold off, we got a 24% decline after that. If it would be the best store of value, it would have swept all time high and continue to blow the roof, literally, but it didn't. So those who bet on gold just lost a quarter of their investment's value, in case they bought gold that day.
Silver pretty much had the same faith, with a bit more bitter results as the drop was of almost 37%.
You can argue that both precious metals mentioned above had a nice run previously and set new all time highs both, which is true, but in times of crises, they preformed exactly the opposite of what some people expect.
NASDAQ had a similar evolution, maybe the drop was not as sharp as in case of precious metals, but we've seen a 12% drop, before a reversal.
S&P 500, the stock market index had a 8.42% drop.
Dow Jones, the stock market index of 30 prominent companies listed on stock exchanges in the United States, down 8.2%.
$USD on the other hand wrote a swing low that very day and went up 5% since then.
The obvious winner was crude oil. Everyone with a bit of knowledge knew what's on stake here and those who were trading crude made the move and as a result, made the money too as crude went up 67% and even though there has been corrections, going back to $70's level, which was the norm before the war started is slim right now.
Each party is announcing victory every week twice, but you can't take these announcements seriously as the war is far from over and the real effects of it are yet to come. Fuel prices have been fluctuating in every country. Some countries are not dependent on oil coming from that region, but those that are need to manage the situation the best way they can. Flight prices have surged significantly not only due to fuel prices but also because of airspace rerouting.
In case of such crises, usually money flows out of risk assets, into less risky areas. Crypto is considered risk and we've seen how it reacts in times of crises, but that doesn't mean each asset is performing the same way.
$BTC is up 31% since the war started. It has been continuing its journey like nothing happened and from technical point of view, it's a healthy evolution.
$ETH had a similar evolution, with a slightly better result, but the difference is insignificant, what matters is that in this case it's been a trustworthy asset.
This new crisis, just like the previous ones has shown what a decentralized asset means when it comes to free payment. Money has been weaponized for so long, it's time to have a decentralized currency that is not controlled by any entity.
Please note, this is not financial advice, I'm not going to tell you what to invest in, that's your responsibility.
So what do you think the best store of value is? Let me know in a comment. Let's see what you have in mind.
All charts are from Tradingview.
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Weapons companies shares are in my opinion the best value stores, mankind is idiotic and war will keep going forever, as long as there will be the man there will be war, those companies are never gonna fail, on the opposite
You're right about that, as long as two people exist on earth, there will always be a conflict. Weapon companies will exist too and if you know which one to choose, you may make some money.
Best store of value ... well
I hope my investment in to the p2p borrow and rental service for physical objects (in our neighbourhood) will turn out to be the best store-of-value for years - f not decades - to come (www.peerby.com)
though I like to believe BTC is a great store-of-value we cannot predict if BTC will stay dominant, though for the foreseeable future BTC may seem to be a great store-of-value ... adding more to BTC you may like to wait a little until the weekly cycle comes to its end later this month, or next month
although I was for a long time not a proponent of investing into bricks, I think I am changing my mind on this one. bricks as in homes is what may be the best store-of-value for the long term. for many different reasons and many different scenarios. inflation may never get to low percentages anymore, while we all need a home to live in. even when money itself may become worthless (eg when AI/Robotics executes all our jobs), a home is still needed, paid in whatever asset in whatever scenario is going to play out next 50 to 100 years.
TLDR: housing is perhaps the best store-of-value
Looks like you have quite a plan worked out for yourself.
That p2p borrow and rental service looks really interesting. I wish we would have it in my country, but who knows, maybe one day.
$BTC is definitely a good store of value, if you know how to play the game correctly.
I agree with housing as well. I think a mix is the best and you have figured it out well.
I wish I had held onto more of my ETH when I had it. Of course I used it for the ridiculously high gas prices or just threw it into stupid things. I have a monthly buy of BTC that I just keep stacking.
Gas prices are a nightmare, especially when you need to transact.
I had 10Eth back in 2022 with my earnings with doing Crypto Marketing via Telegram. I was thinking to hold for long term, but I sell them all to spend at not important stuffs, Now I feel bad for myself.
It's not too late yet, I am now doing my best to earn reputation here on Hive and I am adding something by my pocket each week to build my account in good way.
Many have done what you've done, selling their crypto to buy shiny and useless things. Well, some learn from their mistakes, others don't.
And who learn they Win, others keep doing that.
Yup, seems like showing off is more important than focusing on what's right.
Hmm, for some it is important to just show off some silly things, but when they learn from mistakes they do feel bad on what they did for just being present for no reason even if not required.
Oil’s the only clear winner
If you're trading it, it is for sure.