Gold has long been considered the best monetary standard ever to exist. Supporters of cryptocurrency claim that Bitcoin is digital gold and is a modern version of the precious metal. Crude oil is also often referred to as black gold and is arguably the most important geopolitical asset globally.
All three scarce assets have become increasingly crucial as currencies across the globe face devastating debasement. For traders looking to add gold to their portfolio –– whether it is black, yellow, or digital –– PrimeXBT is the trading platform that has you covered.
Black Gold
According to Encylopedia.com, “black gold” is an informal term for crude oil or petroleum. It is called black because of Crude oil’s appearance when it comes out of the ground, and gold because it has made everyone involved in the oil industry wealthy, and it created a rush similar to the “gold rush” era of the early United States.
Today, rising oil prices are on everyone’s minds, and governments are struggling to maintain critical reserves necessary to maintain price stability while also warming people’s homes in the winter. Crude oil prices have since retreated slightly as the US released its strategic reserves, but at one point, oil prices were up more than 60% for the year.
Even the US has bids waiting to buy barrels of oil at prices of between $67 and $72, which are levels that could act as support long-term. Traders can take advantage of historical oil volatility and the highest prices since The Great Recession using powerful PrimeXBT trading tools.
A long position in oil during the energy crisis could live up to the name black gold by making those involved in the trade rich. A hedge short during the recent pullback would have also been profitable, allowing you to profit from both directions of Crude and Brent oil volatility. PrimeXBT provides access to the two significant types of oil dominating the world.
Digital Gold
During the short decade-plus that the cryptocurrency industry has been around, Bitcoin has been referred to as digital gold. Bitcoin’s creator, Satoshi Nakamoto, sought to give Bitcoin specific attributes that are shared with gold, such as scarcity. Even the term mining, which is the process of unlocking more BTC, comes from the gold industry.
Although neither Bitcoin nor gold has been able to hold up against a soaring dollar and the highest inflation in over 40 years, the digital gold narrative is what drove Bitcoin from $10,000 to more than $60,000 in 2020 and 2021. Paul Tudor Jones was famously quoted as calling Bitcoin the fastest horse in the race against inflation, and it reminded him of gold in the 1970s.
Back then, in the 1970s, gold rallied more than 2,000%. From the 2018 bear market bottom in crypto to the bull market peak in late 2021, Bitcoin rallied more than 2,000%. While gold will always have a place in investors’ portfolios and is currently more important geopolitically, Bitcoin could have a lot more growth potential as an investment.
But Bitcoin is significantly more volatile than the safe haven asset. During the 2019 early bull market in crypto, Bitcoin and gold grew in tandem. Today, they are both falling together, but they could turn around once again at any moment. PrimeXBT traders have the ability to both long and short Bitcoin and other cryptocurrencies with up to 200x leverage to maximize returns and get the most out of every price swing.
Yellow Gold
The first ever gold coins were first struck on the order of King Croesus of Lydia at approximately 550 BC. Coins were the primary form of money prior to paper currencies taking over. However, even early paper money was tied to the value of gold. The gold standard was the international monetary system up until the United States suspended the convertibility of the dollar into gold.
After the so-called Nixon Shock, the international monetary system moved to a fiat currency system backed by central banks. Gold remains up more than 4,500% since this was enacted, highlighting the importance of scarcity. According to Wikipedia, the precious metal was a preferred form of money due to its rarity, durability, divisibility, fungibility, and ease of identification.
Gold is down roughly 20% from 2020 highs, but with the world on the cusp of a potential World War III situation and currencies at risk of collapse from debasement, the answer could once again be a move to a standard built around the golden commodity.
PrimeXBT provides access to precious metals trading like silver and gold as a way to hedge a portfolio against a failure of the current system. Long gold during a recession has been the best way to survive and stay profitable in the past –– will gold prove its worth once again?
Go For The Gold With The New Standard Around: PrimeXBT
The award-winning PrimeXBT trading platform has more than 100 different trading instruments to build a portfolio around, including black, yellow, and digital gold with Crude and Brent oil, silver and gold, and Bitcoin and a wide range of altcoins. The platform also includes other traditional assets outside of commodities, including stock indices and forex currencies.
Built-in technical analysis tools let traders get a read on the trend and spot oversold or overbought conditions that tell exactly when to go long or short. The PrimeXBT Trading Academy teaches traders how to use technical indicators and trading strategies to take advantage of each price movement –– up or down.
Leveraged trading lets traders profit from even the tightest sideways conditions, while other alternative PrimeXBT solutions like Covesting copy trading and yield accounts allow investors to make money passively. Weekly trading competitions at PrimeXBT Contests give users a chance to win free prizes and practice trading without any risk.
From start to finish, using PrimeXBT, anyone can buy crypto or make a deposit and trade Bitcoin, oil, gold, the S&P 500, and much more under one roof. Check out PrimeXBT, download the free mobile app for Android or iOS devices, and go for the gold standard of trading platforms.
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