Gold, Bitcoin, Rent or BR

This simple article is aimed at Dominicans with some savings who want to obtain a secure return, without continuing to do stupid things and be the target of scams. Or are there donkeys left?

Gold is a safe asset, an ancient refuge and preferred by the Central Banks as a reserve. It also has multiple uses in the real economy. Jewelry or gold coins, which consume 70% of the market.

Gold does not generate interest unlike other assets and its price moves based on the interest rate. If these go up, gold goes down and vice versa.

Price stability is another factor. Although gold goes up and down, it is relatively stable over the long term. Today its price exceeds US$1,900 an ounce and a year ago it was at US$1,300 (variation 47%).

But when there is high inflation, gold has been the ideal refuge, although the logistics of managing certain amounts are complex.

Cryptocurrencies have been gaining space as an investment alternative, which you can do from home. Its history is short, with just over a decade. Using Bitcoin as an example (a pioneer in the technology known as blockchain), volatility has been its worst enemy. After reaching 69 thousand dollars in 2021, it fell to 14 thousand at the end of 2022 (variation 476%). In 2022, several cryptocurrencies have disappeared, leaving investors with great losses. But bitcoin survives and recovers ground starting in 2023 (US$20,000). Fixed income (bonds or certificates) guarantees you a moderate return with minimal risk, while equities (stocks) are very risky, but hopefully offer higher returns.

With the stock markets full of uncertainty in the face of a possible recession and the virtual currency with no sure direction, I would recommend investing in fixed income whose rates are currently above inflation depending on the terms (3 or more years). Banks can help you by giving you different options where your money will be safe, you will have some benefits and you will keep your capital intact given the stability of the exchange rate. And if you want to have the most available money, open a fixed-term certificate with lower rates.

Finally, another good investment is real estate where you rarely lose.

But don’t keep eating fake butter, you assholes.

PS: Bill Gates or Warren Buffett, in times of crisis, diversify their investments in stocks, bonds, real estate and gold. They lose in one and win in another.

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