Topic: Financial Crisis and Safe Havens - page 2. (Read 876 times)

A safe haven investment is undoubtedly gold/precious metal, coz you looking for safe haven it should be safe. Bitcoin has high volatility, it's good for profitable/long term investment, not for saving investment. However i think your percentage are suited for you, 30:70. you (and me too) are still young, better to make huge money before we get old

Thanks for you input guys. You mentioned some really good points.  


To explain some of my desicions here are some of my view points:

1. Yes, I fully agree. The Dow and indices are looking good right now reaching ATHs. But I like to refer to statistics. One thing is sure whether 1 year or 5 year there will be a crash some time.

2. I guess it's arguable if crypto is a safe haven or not. But I'm the kind of person who belives crypto will go up in a crisis.

3. Good point. I always try to have about 80% in BTC and 20% in Alts.



Well, I like precious metals but I see them as "having money" but not "making money". My investment principle is if you are young take a risk. If you lose money you can earn some again. If you are old don't risk your retirement funts. Therefore I will build a a risky porfolio now and make it saver each year.



I'm totally feeling you  



If it's your dream to own a house go for it! Once I have enough money to buy an apartement I'll rent it though.



Don't get me wrong I still have fiat maybe I should have metioned it.

But precious metals are simply the safest investment of all asset classes. Every fond manager has at least 5% in their portfolio if I'm not wrong. Fiat currencies come and go but gold and silver were always there. But like I already said pricious metals = having money but not making money.

It's simply the last egg in the nest when everything goes wrong. I will try to have at least 3 pay checks in precious metals and at most 15%-20% but most likely 15%.



Totally agree with you if someone could predict the market making money would be easy. Your investment strategy can be as good as you want at the end all you can do is an educated guess. It's a matter of luck.



Maybe I should focus on crypto now and stack up my precious metals over time. Because now it's unlikely that there will be a crisis soon but as years go by the possiblity will be higher.

Please do all by yourself. It is better to understand everything by yourself and do it personally rather than depending on someone else for your investment. No one is going to be worried about your investment else than you.
There are many website services that offers trading tips and recommend you the alts to invest in it, but still it is your money and you should hold yourself responsible for it.

Your strategy is fine, it could be a good idea to add some stocks anyway just in case they do fine for more time than you think but for the most part your strategy seems solid however since you are trying to find a safe haven from the next economic crisis then I think it makes more sense to invest more on precious metals, the percentages that you give seems better suited for someone that is an investor.

The way the financial system is more complicated than just assuming based on past result there is a basis for the future. Before any financial crisis that is to happen, there is always a boom just like the 2008 you made reference to but to the best of my reading, I have not seen any boom to further solidify your argument of any potential crash happening next year. On the issue of diversification, there is need for adequate understanding of the current phenomena rather than relying on historical figures.

It's easy to forget how complicated something can seem to a newcomer if you yourself use it pretty much every day. Crypto fosters a technocracy, in a way.

Good point about not leaving money in the bank. Luckily banks don't go bust as often as the stock market does though. Nonetheless if hyper-inflation occurs not even taking your money off banks will help you. In that case all that is left is indeed an escape into crypto-currencies.

Bitcoin is a safe haven alright for the inflation beaten fiat currencies, but I don't understand what hedging effect you see in precious metal. I think you can simply hold the rest percentage of your fund in USD to cushion drawdown in your crypto holdings.

my goal is real estate first before diversifying into other things. i want to own a house even if it means a small one in some place cheap (but decent neighborhood). and i am already building towards that. although it may be soon for your financial state but keep it in mind.

the i believe that precious metals, specially gold will always shine even in possible financial crisis. people know gold, they can buy it anywhere. they always go to it when they want to invest.

as for bitcoin, i won't go all in, but i don't go small either. it has a lot of potential to grow. it has already given me a lot of profit and will surely continue to do so. and it will only grow bigger as more people become aware of it. it is not like gold that people already know and decide whether or not to invest.

as for altcoins, i don't count on them much. they are too weak for my taste to trust my money in them for long.

Err. You have a point there. I forgot to take into consideration that not a lot of people how to use or even knows anything about bitcoin in general. Pretty much the tech-savvier kinds of people have an advantage in case of catastrophes like this. Survival of the fittest, I guess? I wouldn't leave money in the bank though, when something like a huge inflation occurs.

I am in a similar position as you right now. But I'm probably going to be investing more into crypto rather than precious metals, I believe there is more potential going forward.
Ultimately there will be a financial crash but the question is when it will happen. I don't know how you are so certain that it will happen in 8-10 years. I don't know either but it may be coming our way sooner than expected. After I will be looking to buy some cheap real estate.

It's even easier to pull your money out of the market completely and wait for the dust to settle. Arguably that's one of the reasons why markets starts plummeting, once a bust occurs.

Also I wouldn't be so sure about it being easier to get money into Bitcoin. It's easier once you know how to buy and how to store securely, but I wouldn't say that that's the case for the general populace. Most people still have to learn how to get into Bitcoin. Even then you can just as easily buy bonds or gold ETF shares. Both of which are digital as well. Physical gold isn't that hard to move, unless of course you're trying to invest several 100k, in which case you'd probably just leave it at the bank anyways.

You crypto portfolio shouldn't be over 20%. At least I won't. 70%-90% is just too much in such volatile market, and I am not sure if we can consider cryptos as a "safe haven"  I will prefer to invest at least 50% in precious metals which are far more safe than cryptos. 70% in cryptos you are taking the risk to the extreme as possible. But, of course, you know, usually bigger risk means bigger profits, but when it's about securing your investments it is something else.

They probably go towards less risky investments, but I think it's easier to get your money into bitcoin. They just need to connect their bank account to a decent exchange then they're good to go. Not like going towards precious metals or so. Not to mention bitcoin is digital so they wouldn't need to move physically heavy stuff. Just my 2 satoshis.

I appreciate your efforts and thinking and the way you are investing while you are still a student. In this period of age no one can afford real estate investment because it needs a huge capital. Precious metals is good choice but in my opinion you have to increase the percentage of your investment in it, because metals price are much stable so there is no chance of loss and it also increases gradually.
The most important thing is don't rely on cryptos too much, 70 to 90 percentage is a huge investment, i will never advice you to do so because cryptos are unpredictable and highly volatile, keep it low about 50% of your total funds.

Some thoughts on this:

1) Accurately telling when the next financial crisis will hit is as hard as telling when a stock / crypto has reached a top or bottom. Sure, a lot of people have been waiting for a stock market correction since the last few 2-4 years, then again the markets may very well continue to grow for the next 5-10 years until crisis hits.

2) During times of crisis people tend towards less risky investments. Thus I'm not quite sure whether crypto is a viable safe haven / financial crisis hedge -- yet.

3) Historically BTC has outperformed pretty much every alt out there, keep that in mind when adding alts to your portfolio

Hi guys,
I could really need some external advice on investments and would be happy if you would share your thought.

First let me explain my current sitation. At the moment I'm still a student but I work a lot in addition to my studies. Therefore I have about 500$-1000$ each month to invest.
I'm really a big fan of investing and especially diversification. My dream porfolio would be about 15-20% precious metals, 20-30% Cryptocurrencies, 20% real estate and 30-45% stocks and bonds.


So at the moment I don't have the financial possibilities to afford any real estate cause prices are much too high in my country. Which leaves me with the other 3 asset classes. We also know that statisticly there is a financial crisis ever 8-10 years. Keeping in mind that the last one happened in 2008 there won't be much time left to profit of the stock market (I know the Dow is doing well right know and there are no signs for a crisis).

Considering the stuff I told you by now my strategy is to focus only on "safe haven investments". Which means a portfolio of 10%-30% precious metals and 70%-90% Crypto. Once a financial crisis happens it's time to diversify and buy stocks (mostly ETFs).


Do you think this strategy makes sense or would you recomend me to invest fully diversified right from the beginning?  

Thanks for wour help and opintions