Investing in gold is a decision grounded in history and foresight.

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Investing in gold: A timeless store of wealth amidst crypto chaos

The recent sharp decline in Bitcoin’s value, plummeting nearly 10% in a single day and wiping out almost half of this year’s gains, has reignited discussions about the most dependable store of wealth. While Bitcoin, often dubbed “digital gold”, struggles with extreme volatility, gold continues to shine as a stable and reliable asset. That is why investing in gold is a prudent choice.

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Bitcoin’s volatility vs gold’s stability

Bitcoin’s notorious price swings starkly contrast with gold’s historical steadiness. Bitcoin’s value can rapidly diminish due to market sentiment or technical issues. For instance, a significant sell-off in June 2024 saw Bitcoin’s price drop from $35,000 to $32,000 within hours, showcasing its vulnerability.

Gold, in comparison, has consistently preserved its purchasing power over millennia. In 2020, amidst the COVID-19 pandemic, gold prices surged from $1,500 to over $2,000 per ounce, demonstrating its role as a safe haven.

Tangibility and intrinsic value

Gold’s tangibility and intrinsic value set it apart. During crises like power outages or economic collapses, gold remains tradeable. For example, during the 2008 financial crisis, gold prices increased by over 25%, reflecting its value as a crisis commodity. Investing in gold is a decision grounded in history and foresight, providing a solid foundation for long-term financial stability.

Bitcoin, however, depends entirely on digital infrastructure. Without technological support, Bitcoin’s value becomes insubstantial, as seen during the 2021 blackout in Xinjiang, China, which caused Bitcoin’s hash rate to drop by 30%, impacting its price. By incorporating investing in gold into your financial strategy, you can enhance your portfolio’s resilience against market fluctuations.

Enduring appeal and resilience

Gold’s enduring appeal is rooted in its ability to weather economic storms, wars, and societal upheavals. Its scarcity and diverse applications in industry and jewelry ensure its lasting value. Ultimately, investing in gold offers a tangible and historically proven way to protect and grow your wealth.

In contrast, Bitcoin, while innovative, remains unproven as a reliable hedge against uncertainty. For example, in 2013, Bitcoin’s value fell by 50% within a day due to regulatory concerns, highlighting its unpredictability.

Investor refuge

As cryptocurrency markets become increasingly volatile, investors are drawn to gold’s undeniable allure. Its historical stability and tangible nature make it a compelling choice for those seeking financial security. The recent trend of institutions like central banks increasing their gold reserves further underscores gold’s role as a trusted store of wealth.

By leveraging TradingView‘s comprehensive tools and features, you can effectively analyse gold markets and make informed investment decisions. Whether you’re a novice investor or an experienced trader, TradingView offers a robust platform to navigate the complexities of gold investment.

Its advanced charting tools, technical indicators, community insights, and brokerage integration provide everything you need to make strategic and confident moves in the gold market. TradingView simplifies the process, making it an invaluable resource for anyone looking to invest in gold.

TradingView offers a variety of services for traders and investors, including:

1. Advanced charting tools

Customisable charts with a wide range of technical indicators.

2. Trading and brokerage integration

Connect with multiple brokers to trade directly from the platform.

3. Market analysis

Access to market data and news across different asset classes.

4. Community features

Social networking features where users can share ideas and strategies.

5. Screeners and alerts

Tools to screen for specific stocks or assets and set price alerts.

How to use TradingView for investing in gold

TradingView is a powerful platform for analysing financial markets and making informed investment decisions. If you’re considering investing in gold, here’s a step-by-step guide to using TradingView:

1. Sign up and log in

Visit TradingView.
Create an account using your email or social media profiles.
Log in to access the full features of the platform.

2. Navigating to gold charts

In the search bar at the top of the page, type “Gold” or “XAU/USD” to find gold charts.
Select the gold chart to view its price movements.

3. Customising your chart

Use the toolbar on the left to add drawing tools, such as trendlines and Fibonacci retracements.
On the top toolbar, you can change the chart type (e.g., candlestick, bar, line) and time frame (e.g., daily, weekly, monthly).

4. Applying technical indicators

Click on the “Indicators” button at the top of the chart.
Search for and add indicators like Moving Averages, RSI, MACD, and Bollinger Bands to analyse gold’s price trends and potential buy/sell signals.

5. Setting alerts

Right-click on the chart or use the “Alerts” button to set price alerts.
Configure alerts to notify you via email or SMS when gold reaches a specific price level.

6. Using screener and heatmaps

Use the “Screeners” feature at the bottom of the page to filter gold-related stocks and ETFs based on various criteria.
Access heatmaps to get a visual representation of gold market movements and related assets.

7. Learning from the community

Explore ideas and analysis shared by other traders in the “Ideas” section.
Follow experienced traders and participate in discussions to gain insights into gold trading strategies.

8. Paper Trading

Use the “Paper Trading” feature to practise trading gold without risking real money.
Simulate trades to test your strategies and gain confidence before investing actual capital.

9. Connecting to a broker

If you’re ready to trade, connect your TradingView account to a supported broker.
Execute trades directly from the TradingView platform using real-time data and analysis.

10. Staying informed

Keep an eye on the “News” section for the latest updates and events impacting the gold market.
Use the “Economic Calendar” to track important economic releases that may influence gold prices.

By leveraging TradingView‘s comprehensive tools and features, you can effectively analyse gold markets and make informed investment decisions. Whether you’re a novice investor or an experienced trader, TradingView provides a robust platform for navigating the complexities of gold investment. So, safeguard your financial future by exploring the advantages of investing in gold.

Conclusion

In an era marked by increasing economic uncertainty and the volatility of digital assets, investing in gold emerges as a prudent and time-tested strategy. While cryptocurrencies like Bitcoin have captured the imagination of many, their inherent instability underscores the enduring appeal of gold as a reliable store of wealth.

By diversifying your portfolio with gold, you can mitigate risks associated with other asset classes and enhance your financial security. Historically, gold has proven its resilience during economic downturns and periods of geopolitical unrest. Whether you are a seasoned investor or just starting to build your wealth, considering investing in gold should be a cornerstone of your financial plan.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is essential to conduct thorough research¹or consult with a financial advisor before making investment decisions.

Sources:

trakx.io

cruxinvestor.com

investopedia.com

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