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Stocks, gold or cryptocurrencies? #FinanceFriday

With traditional currencies being diluted by Quantitative Easing where should we invest? The choice is stocks, gold or cryptocurrencies, so which should we choose? Gold has appreciated throughout the pandemic but should we sell now the price has fallen? In fact, this week it has appreciated a little so maybe we should hold some gold. Stocks are still increasing in value especially banking and oil so they are good investments. Cryptocurrencies I see as riskier. They have been appreciating this week driven by central bank stimulus but will they hold the gains in the long term?

Stocks, gold or cryptocurrencies?

Cryptos

I still see Ripple (XRP) as the best choice among the cryptos. It’s on .5897 (1.17% up) on eToro this morning. I bought Ripple earlier this year at .11 and sold it for a small profit. It has appreciated nicely since then. If you’re going to invest then a small investment for a medium or long-term return would seem the best way. Don’t get greedy with cryptos and I wouldn’t leverage either.

eToro

My investments on the eToro platform are now showing a small profit but they are dollar-denominated and the pound has appreciated against the dollar so my return in dollar terms is about 9% but it is only 3% in sterling terms. In this low-interest rate environment, 3% is good enough. I’m hoping to diversify more soon and maybe increase my return.

Stocks

My shares in RDSB and BP have been doing well with the oil price rising but their earnings are in USD so that has been limiting their growth. The same applies to pharmaceuticals. A falling pound against the dollar benefits GSK and AZN. The pound has dropped a little since yesterday, benefiting both oil companies and pharmaceuticals. Uncertainty over Brexit is causing banks to fall further. The slogan “get Brexit done”, now seems ridiculous. Overall the market seems quite calm and everyone is waiting for the Brexit deal to be done and for the AZN vaccine to be rolled out. Those two events could spark a stock market bull run, throw in an appreciating USD and 2021 begins to look promising.

Christmas

Losing the Christmas trade will have a negative effect on many companies. Fortunately, it won’t affect me too much. I’ll lock myself away with my Playstation and hope for a better new year. We might see a surge of Covid infection in January if people have a few drinks at Christmas and forget the virus. People won’t just die from the virus but from other things like heart attacks because the NHS will be overwhelmed. We have to take individual responsibility and try to keep ourselves safe. Stocks, gold or cryptocurrencies? I think I favour stocks to give industry and commerce the investment they need.

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