2008 Financial Crisis to Re-occur in 2020?
The second quarter was one of the worst economic quarters of the 21st century. The current situation of COVID-19 pandemic, almost the whole world is facing a pullback in their economy due to lockdowns imposed earlier. Therefore the financial institutions currently are facing scantines. More so, investors have been fleeing for ‘Safe Haven to Invest’ following the pandemic pressure
The speculation over the trembling banking system got more intense when the business tycoon, Warren Buffett closed all the positions of his establishment, Berkshire Hathaway, from Goldman Sachs. Moreover, the decreased his stakes in most bank stocks including JP Morgan Chase and Wells Fargo.
Safe Havens to Invest in 2020.!
Many analysts and researchers who cautioned with their analysis on the upcoming crisis, also said that the crisis could deepen more. The ‘Rich Dad, Poor Dad’ author Robert Kiyosaki recently alerted the masses with the possible scenarios that could occur. He speculated that Buffett coming out of banks relates to the possible bank bankruptcy ahead. He also said that the Fed and the treasury could distribute money to avoid riots.
“How much gold, silver, Bitcoin do you have?” asked the author indicating some of the safe-haven investment options.
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Cryptos like Bitcoin could multiply your money
The ever-growing crypto market could be a potential market that can be relied upon. The growing capitalization of the crypto market and the Defi market indicates the shift of the focus of the investors from the other investment options.
Bitcoin, the largest and the primitive cryptocurrency is considered as the most favored crypto of all time. Due to its huge market capitalization and more than half of the market dominance, Bitcoin is expected to reach $20000 by this year-end and $100K shortly.
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Currently, the Bitcoin is trading at $11730 with a positive change of 0.42 percent. The currency has rallied more than 50 percent from the start of 2020. Therefore pretty good returns are expected if invested in the cryptos like Bitcoin.
In fact, as per Anthony Pompliano (aka Pomp), Bitcoin has served as one of the best Safe Havens during the Global crises. In his series of recent Twitter threads, he explains that the value of Bitcoin is up almost 70 percent year to date.
One of the key reasons why Bitcoin’s price might go up soon is ‘its limited supply’. On the other side, this currency had emerged during the 2008 economic crisis and has successfully survived over a decade’s journey. In fact, the token is valued more than the other traditional investment options in just a decade.
Also know – Pomp said “Warren Buffett Basically Loves Bitcoin”
Traditional Assets like Gold a Potential Option
Gold, one of the precious metals which is in use from the primitive civilizations is one of the most trusted investment modes. Currently, Gold is trading at $1935 which had recently crossed $2000/ounce. Unfortunately could not maintain and dipped below the mark. However, currently, it is very close to $2000/ounce and is expected to gain much more ahead.
Gold investment has caught worldwide attention, especially when the Oracle of Omaha, Warren Buffett dumped Bank Stakes for Gold. He recently eliminated his positions in Goldman Sachs and invested in a Canadian Gold mining company. This move is speculated to assist in the surge in gold prices.
Also, the craze ascended even more with the fact that in the early 1980s when Buffett purchased 3500tons of silver, it then rallied over 84 percent before the bubble burst. Certainly with the fact that people across the world follow Buffett’s investment advice. That said, a similar scenario is expected with gold when Buffett has invested in Gold now.
Silver to Outperform Gold – Predicts Analyst
On the other hand, silver is always clubbed with other precious metals like Gold. The investors consider holding silver just like Gold that might assist in the time of crisis. Moreover, a large share of the total production is used for industrial purposes which are often related to the state economy.
Silverworks both precious metal and base metal. It has always supported uncertainty revolving during the global trade war, Brexit, and recently, COVID-19.
However, one can go in two ways to invest in silver. Either purchase a physical silver like coins or bars from the banks or jewelry shop Or invest in silver futures or e-silver through commodity market or exchanges like MCX, NCDEX, etc.
While Gold soared over 32 percent this year, highs that weren’t seen since 1979, on the other side, Silver prices shoot up over 30 percent year to date. In fact, Deutsche Bank’s commodities and foreign exchange strategist, Michael Hsueh expected Silver to outperform Gold.