For the last 40 years, The South African Gold Coin Exchange has been recommending that you have a bit of gold on the side. We have always been of the view that you should put 10-15% aside in case of a natural disaster. Who would have thought that Covid-19 would be it? The good news is that the scientists of the day have stepped up to the plate and have done an amazing job. For this we are most grateful.
The world is a fragile place and as population growth, urbanization and demands on food and water increase uncertainty rule. A bit of gold on the side certainly gives you some peace of mind. We have not even touched on financial stability or instability. While the world has increased GDP enormously over the past 100 years, it's not without its risks.
We have seen different types of industrial revolutions both political and economic in nature. Dictators mess up the world but they still have not got out of fashion and probably never will; they mess up things for their own and it impacts on the entire world. The ism of the past are replaced with 20 UN members who put the world on a knifes edge. From Azerbaijan to Zimbabwe, you can have your pick.
We won't name them but they do hoard gold. In fact the money of preference of dictators is gold .......ask Ms Venezuela. So a bit on the side is good business. Which leads to the other bit on the side. It's actually front and centre stage. It's the money of the future for the next generation. It's money with a 6000 year history vs the money of ones and zeros from the 2000’s. It's new millennium money.
It’s Bitcoin and all the other Cryptocurrency. What you can do with it remains to be seen, but there are profits to be made. Not to say there are risks and frayed nerves. No one said there is no pain to gain.You can't create more Bits, but you have to spend time and money to mine it. You have to vault it like gold otherwise someone will take it from you. There are a combination of factors that you need to adhere to and maintain vigilance. One eye open while you sleep and 1 eye open on the computer screen.
Perhaps it needs more care than gold. In the old days you had a key to your safe. Today you have a combination to your safe. Lose it and you will need a locksmith. Lose your Crypto Passkey, and you will want to jump off the proverbial virtual bridge. If you have a bit on the side , a bit of gold and a bit of Bitcoin may be the perfect cocktail for the computer stars of 2020 and beyond.
The only caveat; don't put all eggs in 1 basket, be it Bitcoin, Litecoin, Eth or Dogecoin. Although this adage is as old as the Bible, let it be your guiding light .
Don't forget to put a bit in cash, property and shares into your portfolio. Don't be pulled into the net by selling these categories for the allure of fantastic profits. When the power goes down, you lose everything.
Alan Demby
Chairman
The South African Gold Coin Exchange and The Scoin Shop.