As the US inflation crisis suggests a recession, global market conditions are on the edge. The Fed expects that interest rates will rise in 2023, making this fear even more valid. Many investors believe it’s time for riskier investments to be abandoned and to return to traditional assets such as gold and silver.
This article will compare the performance these investment options during financial crises in order to decide if they should be kept or not.

Bitcoin

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The global market caused a bear market in November 2021, which led to several financial markets falling significantly. The Bitcoin price suffered a similar fate, falling 72% from its record high of $68,789. The current price of Bitcoin is $19277, and it is trying to maintain above the $18500 demand zone.
In March 2020, Bitcoin prices experienced a sudden drop in value due to the coronavirus outbreak. The coin price plunged from $10500 to $3900, representing a 63% drop.
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The 2018 economic crisis saw a further 83.3% drop in Bitcoin prices.
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The XAU/USD chart shows that the Gold price has held its value despite the economic crisis. This behavior could be explained by investors buying these traditional assets because they have historically proven to be value-preserving. This psychology has often appreciated this asset class, whereas others were on red alert.
The gold price soared for five consecutive month, while other markets fell in November. The XAU/USDT pairing saw a 17.7% increase in value from $1750 to $269 during this time. During the covid-19 selloff, however, the gold price fell 14.72% from $1706 to $1450.
Moreover, the Gold price was in a major sideways trend during 2018’s fall. Furthermore, any losses suffered during this period eventually recovered over time.

Silver

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The XAG/USD chart shows that silver prices have reacted similarly as the Gold price. Investors may find that some percentage differences can be a factor in their decision-making.
While the gold price rose 17.7% in November 2021, the silver price rose 25% regarding the low ($21.4) or high ($27) of five months prior.
The XAG/USDT price plunged from $17.5 to $1.7 during the coronavirus breakout. This was a 33% drop. The post-correction rally saw 155% growth, with silver hitting a high of $29.8, while gold experienced a 40% bull market as it reached $2030.
Similar to gold, silver saw a sideways rally. However, during their post-correction rally the gold price showed a 70% rally while the silver price registered 40%.
Notably, Bitcoin prices rose 1600% during the post-covid rally and reached a peak of $65000. However, after the 2018 plunge which saw prices plummet to $3200, the coin experienced a bull run to $1000, registering an impressive 330% jump.
Conclusion
It all depends on your risk appetite and willingness to take on any of these assets. The losses suffered by the major financial markets during the recession were minimal for the Silver and Gold prices. Consequently, investors who are hesitant to invest in risky assets should not do so during weak economic times. Instead, they can choose to invest in gold and silver.
Despite this, the above analysis shows that the crypto and stock markets offer maximum gains during bull markets.

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The content presented may contain the author’s personal opinion and may not reflect current market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.

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