Trade Archives — Is Gold A Better Hedge against inflation?
The Market is high right now and it is going to be hard if you do not keep up.
Read this weeklyAnalysis — To get a structure of what the markets are doing and how they performed in the past week. This will help you get prepared for the coming weeks or even months.
Pre analysis for Gold
Gold has been moving sideways for the past week after a strong bull run the week before. Prices are consolidating and looking for a breakout Bull/ Bear we need to find out — after break out whether it is a green or red candle, we will have to wait for the correction after to confirm the pattern break out and
Only then it would be a great opportunity to enter the trade.
It would be wise to enter late with confirmation than to enter early and confused.
Market scenario for Gold
There has been a downward pressure for Gold and other metals for the past few months — Luckily there has been a pullback from the intense downward pressure near the beginning of the month.
There was a quick move to the upside for the past week but then, Prices have taken a leap downwards on Friday chasing support after a short-range formation. This flow potentially helps the long-term buys to buy the dip after a potential reversal.
With the anonymous s seller in the background, it is kind of hard for the intraday traders since they causing a volatile environment, if the positions are not made at the perfect time they are mostly stoped out.
What is the best inflation Hedge?
As we all know the inflation is basically out of control even though the Fed is totally calm about it. As far as the news follows there is nothing much to do for them. And we are the ones need to take care of our selves and adapt along by finding our own way to overcome this situation, It would be a lot better if we are able to make our weakness our strengths.
So what is the Best Hedge? if you are looking for a Hedge that means you are moving to the other side of the markets meaning, if the situation gets worse here — now you are thinking about who is benefiting from this and to be on that side of the market so that you too can benefit.
When it comes to Hedging there are a lot but when the question is about the best option? Then it surely a few, the answer is pretty simple too, you must have already guessed it — Gold, Silver, and Bitcoin.
All the above three are the best inflation Hedge.
Only based on the portfolio and your capital we can decide which one is ideal for you. Let’s start with Bitcoin.
Hedging with Bitcoin
- Newly created digital currency is a different asset class in itself, it has been here for only a decade and yet shown wide popularity among the entire world population. and at the moment it is under a correction as we speak.
Even though with high popularity I wouldn’t just invest solely based on that, A lot of factors have been missing not to mention the lack of history, It is also not known, the very existence of the creator of Bitcoin itself. There is a lot of misunderstanding and misconceptions in knowing the digital currency and How it works, With it, the Public spread rumors.
As far as technical analysis goes, Bitcoin is one of the assets that have made many millionaires overnight not to mention many have lost a lot of money too -It is a Highly risky Asset, if not properly managed.
Investors with great capital and can Handle the Volatile Pressure of the Market, can surely invest in Bitcoin and maybe in some other cryptocurrencies as well. Bitcoin and other various cryptocurrencies could do well for another decades time. A longer-term investment is needed to get maximum returns.
Hedging with Silver
Silver is the most undervalued asset of all time and it is Highly used in almost everything from coins in physical currency to precious metals in ornaments.
Silver is widely used all around the world. so then why is silver so cheap -to make it affordable to transfer wealth easily and effortlessly between the Govt.
How to Hedge Silver? -as far as technical analysis goes Silver has a beautiful Bullish uptrend continuation pattern — Horizontal triangle. As I speak prices in silver are consolidating and are cooking pressure. Not to mention the manipulation of the markets. which is the same as for Gold and other precious metals have brought tremendous confusion among the newbies in the market, hence losing their part of the fortune.
currently, as we speak Silver is in the price range of 25.00, and is yet to go below for a shorter period mostly as a Fake Out for the pattern and then continuing to move higher for about 50.00 by year-end.
Hedging with Gold
The most awaited answer to the question is — is Gold still the best option for the inflation hedge? is why not,
Why not Gold be a Good option, over the years Gold has proven to be effective, the history speaks for itself. Gold prices have begun to rise recently and have a target of 2100.oo by the year-end.
Gold and silver is also known as a financial asset and is reserved by many Govt all over the world.
Conclusion
During my personal research, it is noted the inflation should be no more than 2% and if it is it is going to be hard to handle. and as the best inflation hedge for it would be Gold and Silver as far as technical analysis goes and honestly,
I’m not sure about bitcoin but since many are beginning to adopt bitcoin as a payment option and for some bitcoin itself as a digital currency just like in El Salvador
Congress on June 9 approved Bukele’s proposal to embrace the cryptocurrency, making El Salvador the first country in the world to adopt bitcoin as legal tender.
Faithfully yours
Mithun suresh, Trader, Investor and Founder of Trade Archives Newsletters
Choose to Trade wisely and be successful. Until next time, Good Day.
