Bitcoin, Gold, Silver and Ethereum can all be used as inflation hedges

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Precious metals investors had a grueling year as gold prices contracted after two years of gains.

In recent days, however, gold and silver prices have reached their highest levels since November’s strong sell-off. They remain a good alternative asset to invest in, wrote Stephen “Sarge” Guilfoyle in a recent Real Money Pro column.

“Now that consumer inflation is running at an annual rate of 7% and wages are rising only 4.7% a year, investors are realizing one of the perceived functions of the yellow metal, that of being a hedge against inflation…”, Guilfoyle recently wrote on Real. Money.

These days, however, cryptocurrencies have received some of the capital that investors would have previously invested in gold or silver.

“There is no doubt in my mind that Bitcoin or Ethereum have taken a cut from gold or silver when it comes to alternative (non-fiat money) investments,” he wrote. “While people of a certain age (mine) rely on precious metals to get around the system, that’s precisely how younger people than me look at cryptos.”

Although Guilfoyle doesn’t own any cryptocurrency, he thinks Ethereum is a better bet than Bitcoin.

“I am no naysayer, though I know where my physical gold and silver are when the lights go out,” Guilfoyle wrote. “I can’t tell you what to do. I can tell you what I do. I have long argued that 5-10% of my investable funds should be held in non-real estate alternative assets.

Investors who prefer to allocate their money to crypto could invest some in the 5-10% portion of alternative assets he recommends.

“What I’m doing is shifting my bias from dominant gold to still majority gold, but significantly higher exposure to silver,” he wrote.

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