Gold is often seen as an asset of the past, delivering slow gains through a dated financial system. Gold bugs (investors that swear by gold) value the safety and security of gold over all else. Over thousands of years, it has been the most reliable store of value.
Slow gains and security aren’t compelling until you hit a cycle of black swan events (global crises that scramble markets and shift mass behavior), the likes of which we are seeing right now. You can’t predict wars or pandemics, but you can use safe-haven assets to secure value against the market.
Gold has been on fire lately, with many attributing its rise to the conflict in Ukraine. The uptrend began long before the invasion of 24th of February, starting in March of 2021. It was spurred on by rapidly rising inflation worldwide – a problem that has not been solved and will continue post-war.
In modern finance, you can’t talk about gold without Bitcoin. Often referred to as digital gold, Bitcoin is a scarce asset that is projected to absorb much of the 12 Trillion dollar market valuation of gold over the coming years. After 3 months of prices dropping from the 2021 highs, Bitcoin is currently at attractive price levels with incredible potential for the upside.
What caused high inflation?
In response to the Covid pandemic, governments around the world printed trillions of dollars in new currency to help economies survive the crisis. This made all of our money less valuable, as there was suddenly far more of it. It worked for a while, business boomed, and the markets set record highs. Unfortunately, this could never last.
Earlier this year, the US Central Bank – the entity running the worlds largest money printer – announced that they would have to raise rates to reverse inflation, making loans more expensive and slowing economic growth.
Then Russia invaded.
Suddenly the global economy saw a rapid shift from riskier assets to those with inherent value. The price of oil and wheat exploded, and the old, slow, safe haven of gold rose with them. The conflict was a headwind driving the existing gold/inflation trend to new heights.
Peter Schiff, the infamous gold bug, says the Russia-Ukraine situation is “just a bunch of noise.”
“The real story is one of inflation. And the inflation story is getting bleaker and bleaker for America and other countries, and brighter and brighter for gold.”
His thesis supports the store of wealth narratives of Bitcoin and gold. It stands to reason that the trend will continue after the war, as the Central Bank rate hikes are likely to be postponed, keeping the global economy out of recession.
Inflation is still the biggest risk to your personal wealth.
Even through the most unpredictable market cycles, opportunity exists. To combat the threat of inflation directly, the team at Revix — a Cape Town-based investment platform backed by JSE listed Sabvest — developed a one of a kind bundle that protects your wealth against inflation while still benefiting from the upside opportunity that cryptocurrency has to offer.
They’ve called it the Inflation Shield Bundle – an optimised bundle, giving you the protection of gold with the performance of Bitcoin, through a single investment. The ratio of gold to Bitcoin within the bundle was based on a historic risk vs return data. Extensive testing led to the optimal proportion of gold and Bitcoin, resulting in the highest overall return while minimising negative price movements.
Today the bundle is composed of 75% Pax Gold (a cryptocurrency backed by 1:1 by physical gold in London Brinks vaults) and 25% Bitcoin (digital gold for a digital world).
How has the bundle performed?
The Inflation Shield Bundle has outperformed both Bitcoin and gold over the last 12 months.
The Inflation Shield Bundle offers protection against rising inflation, allowing you to ride out the current market volatility, making the most of the rising gold trend before the coming rate hikes. The inclusion of Bitcoin gives you just enough growth exposure to spring back from the dips, while the high percentage of Pax Gold anchors your investment against the money printers. The Inflation Shield Bundle is an invaluable tool to add to your portfolio, allowing you to hedge and secure value while facing curveballs.
0% buy-in fees from 11 – 17 March
Revix is cutting all buy-in fees for any Inflation Shield Bundle purchase from the 11th to the 17th of March.
0% losses. 100% gains!
If you’re serious about security, Revix is offering free loss cover on your Inflation Shield Bundle for the month of March for a new deposit of R20 0000 and a R20 000 purchase of the bundle, between 11 and 17 March. If the market value of the bundle is lower at the end of March than when you bought it, we’ll top it up for you. If the value is higher, you keep the gains. Win, win.
About Revix
Revix brings simplicity, trust and great customer service to investing in cryptocurrencies. Its easy-to-use online platform enables you to securely own the world’s top cryptocurrencies in just a few clicks. Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.
Remember, cryptocurrencies are high-risk investments. You should not invest more than you can afford to lose, and before investing, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
This article is intended for informational purposes only. The views expressed are opinions, not facts, and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any cryptocurrency.
To learn more visit www.revix.com.
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