A recent survey reveals that bitcoin has become a preferred investment choice among investors than gold in Australia. Out of the 2,000 investors who participated in the program, about 12.5% held cryptocurrency, while 12.1% invested in precious metals.
But the perception of Bitcoin as a safe investment tool is quite debatable. Though it has upheld its value amidst the global slowdown due to the ongoing pandemic, you need to compare the two asset types to determine the better investment option. It is best to consult experts like Gold Bullion Australia, to decide whether bitcoin can replace or compete with gold to hedge and diversify your portfolio.
Here are a few key aspects that will help you choose the better trading and investment instrument between gold and bitcoin.
Investing in Gold
In 2020, Australia produced the country’s best gold yield in two decades, around 320 metric tons. Experts predict the value to reach a peak of about 380 metric tons by next year.
Aussies purchase this precious metal to diversify their investment portfolio and use its price fluctuations through financial instruments such as ETFs.
Top specialists can help you with the gold purchase and its investment to ensure long-term balance in your prudent investment profile.
Investing in Bitcoin
In 2017, the Australian government legalised cryptocurrencies, subject to the AML/CTF 2006, section 5, and other applicable rules. And according to the legislature, bitcoin is a property and subject to CGT.
Recently, major Australian investment management firms like Pendal Group suggested moving from gold to bitcoin. Also, capital cities like Perth and Sydney have become hotspots where bitcoin transactions happen extensively. Such opportunities can compel you to use this digital currency to make transactions and investments.
Safety and Legality
Though AUSTRAC and ASIC have initiated more robust regulations for bitcoin trading in recent years, gold has been a more trusted investment asset. The reason being that gold offers transparency in trading, with the National Measurement Act 1960 and National Trade Measurement Regulations 2009 regulating its trade.
On the other hand, bitcoin has an encrypted, decentralised system, making it difficult to corrupt. But its infrastructure is still weak with safety concerns.
Industry leaders like Gold Bullion Australia provide a secure, custom-built facility where your gold can remain safe. And they regularly audit to ensure compliance, accuracy, and transparency.
Australia does not count among the world’s top 10 places for bitcoin usage, yet it boasts an increased BTC use in cities, including Melbourne and Sydney.
On the other hand, soon, the country will become the world’s largest gold-producing nation, overtaking China, with gold exports estimated to exceed an AU$ 26 billion mark.
While bitcoin experts can predict cryptocurrency availability, Gold bullion consultants are aware of the gold mining trends in Australia. And considering the current gold reserves, they suggest investing in the precious metal through your superannuation fund portfolio for proactive wealth management.
The Volatility Factor
Historical data, by and large, indicates that bitcoin is highly volatile, as investors’ decisions can fluctuate their prices quickly. While the bitcoin rates in Australia increased from $1,000 to $20,000 in 2017, they fell to around $7,000 in 2018.
On the other hand, gold is relatively less volatile than every other investment option, and market risks do less harm to its price. Top consultants understand the market conditions and can help you sell your gold assets at the best rate possible.
While the RBA is working on a digital blockchain version of the Australian dollar to explore bitcoin trading options, experts still consider gold a less risky investment. And with Australian shares hitting a 13-month high on gold in recent months has made the notion stronger.
If you want to invest in gold, discuss your portfolio diversification options with a reputed gold bullion dealer. Rest assured, you can lead a peaceful life in Australia, with the assurance that gold investment will keep your savings well-preserved for the future.