Gold, known to mankind for thousands of years, and cryptocurrencies, present on the market since 2009, are two seemingly different worlds of investment. In this lesson, we will analyze what they have in common, what sets them apart, and what benefits they can bring to investors.
The history of gold – from meteorites to safes
Did you know that gold came to Earth from space? It was formed as a result of neutron star collisions and arrived on our planet via meteorites. This made it an extremely rare and valuable metal.
- First uses: Ancient civilizations such as Egypt and Mesopotamia used gold as an ornament, a means of payment, and a symbol of divine power.
- Monetary system: For centuries, gold was the foundation of the global economy. The gold standard, in effect until World War I, guaranteed the stability of currencies.
Why do investors choose gold?
A safe haven in uncertain times
For centuries, gold has served as a protection against inflation and economic crises. Central banks around the world accumulate gold to stabilize their reserves.
Limited supply
According to reports from the World Gold Council, there are only about 53 million tons of gold left on Earth to be mined, making it an asset of enduring value.
Versatility and liquidity
Gold can be sold almost anywhere, and its value is recognized worldwide.
Industrial uses
In addition to its investment role, gold is used in jewelry, electronics, and medicine.
Types of investment gold
Bars and ingots
Certified products weighing from a few grams to several kilograms.
Bullion coins
Popular with investors, e.g., Krugerrand, Vienna Philharmonic.
Collector coins
Unique products with historical or artistic value.
Gold vs. cryptocurrencies – which to choose?
Stability vs. volatility
Gold is a symbol of stability, ideal for conservative investors. Cryptocurrencies, such as Bitcoin, offer the possibility of dynamic returns but carry more risk.
Physicality vs. digitality
Gold is a tangible commodity, while cryptocurrencies are intangible assets that can be stored in digital wallets.
History vs. innovation
Gold represents millennia of tradition, while cryptocurrencies represent the technological revolution of the 21st century.
Practical aspects of investing in gold
Where to buy
National mints, physical stores, online platforms (e.g., Kanga Shop).
Storage
Gold is best kept in safes or bank vaults.
Taxes
In Poland, the sale of gold after 6 months of purchase is exempt from income tax.
Liquidity
Gold can be quickly monetized at numerous buying points around the world.
Summary
Gold and cryptocurrencies are two different but complementary assets. Gold guarantees stability, while cryptocurrencies offer the chance for dynamic returns. Investing in both assets can be an effective diversification strategy.
Want to combine tradition and modernity? You can find investment gold available for cryptocurrencies at Kanga Shop. Educate yourself, invest consciously, and discover new opportunities!
