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Investment Bias: Why Gold, Crypto, and Risk-free Won't Save You in a Future Crisis

Sometimes I replay this scenario in my head

Let's assume that China (which is, in fact, a 100% trigger today) and other key players in this area will continue to massively buy gold and silver, moving into "risk-free".

So what's next?

It's the same with the crypt. If only right now everyone would abruptly rush to buy it up.

Ultimately, it doesn't make a person feel cold or hot.

And who does the investor work for?

In fact, per end user, per person.

And what is the most important thing for a person, especially in a crisis?

A crisis is not when there is no money, but when there is no product (just in case).

What is closer and more necessary for the body?

That's right - food, clothes, light and warmth, and of course, do not forget about pleasure.

(We don't take long-term assets like real estate right now; most people still have a roof over their heads.)

I do not think that a person in a crisis will have a very high need for gold or silver products.

Although yes, in fairness, these are important raw materials for the production of high-tech equipment.

It is due to technology that people enjoy today.: the Internet, smartphones, software, etc. And businesses optimize the automation of their business processes.

But here, after all, both the crypt and the blockchain are nearby - without them, the transition to WEB3 is no longer possible. That's exactly what metal will be needed for to a greater extent as a means of production, rather than as a risk-free asset.

But does the person who is buying it so diligently need it for this in such volumes?

After all, demand determines the price of precious metals today, which is allegedly a weak dollar.

The weak dollar is the background, not the reason.

Investment demand, rather than currency dynamics, remains the key factor in current prices for precious metals.

And that's what I'm getting at.

Today, the emphasis is mainly on things that are still secondary to human life.

And capital is gradually leaving the products of the natural need of the real consumer goods sector.

And, in my opinion, this is what makes the future situation worse.

When investors start to sober up, I do not rule out a serious pullback, including in metals.

Financial assets can grow on their own for a long time, but eventually everything will come down to real consumption.

And the longer this gap persists, the more painful the moment of returning to reality will be.

автор - Михаленко Р.
M R. Автор - kaktotak.by Specialization: financial and economic design - modeling of business, investment projects of the real sector, analysis and evaluation of efficiency, optimization of the management decision system.

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