Store of Value

This is a topic that is always in my mind and should be in yours too, if you want a good future for yourself. Storing value is important and not as easy as some think, if you want the best result.

Photo by Ahmet Kahveci on Unsplash

Ever since the current, or should I say the newest war started, I've been keeping an eye on things you can store value in or with, to see how their value reacts to Geo-political changes. It gives you an indication if your strategy is good or bad and also presents some opportunities to fine tune, or change your plans in the future.

Photo by Nico Knaack on Unsplash

Today I'm going to try to show you how they reacted during the current war, which is far from over.

Photo by Sébastien Lavalaye on Unsplash

Let's start with Gold as precious metals and gold in general has been knows, or thought to be the safest and best store of value for so long.

This is the daily tokenized Gold chart. I marked the day the current war started. You can see gold hit $5470 and then literally sold off, we got a 24% decline after that. If it would be the best store of value, it would have swept all time high and continue to blow the roof, literally, but it didn't. So those who bet on gold just lost a quarter of their investment's value, in case they bought gold that day.

Silver pretty much had the same faith, with a bit more bitter results as the drop was of almost 37%.

You can argue that both precious metals mentioned above had a nice run previously and set new all time highs both, which is true, but in times of crises, they preformed exactly the opposite of what some people expect.

NASDAQ had a similar evolution, maybe the drop was not as sharp as in case of precious metals, but we've seen a 12% drop, before a reversal.

S&P 500, the stock market index had a 8.42% drop.

Dow Jones, the stock market index of 30 prominent companies listed on stock exchanges in the United States, down 8.2%.

$USD on the other hand wrote a swing low that very day and went up 5% since then.

The obvious winner was crude oil. Everyone with a bit of knowledge knew what's on stake here and those who were trading crude made the move and as a result, made the money too as crude went up 67% and even though there has been corrections, going back to $70's level, which was the norm before the war started is slim right now.

Each party is announcing victory every week twice, but you can't take these announcements seriously as the war is far from over and the real effects of it are yet to come. Fuel prices have been fluctuating in every country. Some countries are not dependent on oil coming from that region, but those that are need to manage the situation the best way they can. Flight prices have surged significantly not only due to fuel prices but also because of airspace rerouting.

In case of such crises, usually money flows out of risk assets, into less risky areas. Crypto is considered risk and we've seen how it reacts in times of crises, but that doesn't mean each asset is performing the same way.

$BTC is up 31% since the war started. It has been continuing its journey like nothing happened and from technical point of view, it's a healthy evolution.

$ETH had a similar evolution, with a slightly better result, but the difference is insignificant, what matters is that in this case it's been a trustworthy asset.

This new crisis, just like the previous ones has shown what a decentralized asset means when it comes to free payment. Money has been weaponized for so long, it's time to have a decentralized currency that is not controlled by any entity.

Please note, this is not financial advice, I'm not going to tell you what to invest in, that's your responsibility.

So what do you think the best store of value is? Let me know in a comment. Let's see what you have in mind.

All charts are from Tradingview.

If you're a newbie, you may want to check out these guides: