It is amazing that a digital currency, which can be mined at the comforts of your home and bought on the internet, has been able to propel itself past many traditional trading currencies and become the number one digital asset. As people all over the world become more aware of how easy and safe it is to invest in digital currencies, the prices have soared. The price of one small unit of the currency known as a “Bitcoin” has increased by more than $1000 to over two thousand dollars in the last week alone.

But the reason behind the rise of this digital currency is because there is no physical commodity, such as gold, silver or platinum that is as liquid as the currency. Gold has only a certain amount of value, so when you sell it for one dollar, you can expect that it will sell for at least that amount. This makes it a great investment, but it does not give any financial institution any way to “print” more of it like they could with a fiat currency.

Fiat currencies like gold and silver can be used to create money that can be deposited into banks and used for transactions on the currency exchanges. They cannot be instantly exchanged for digital currencies like the ones that you can find on the internet. In the event of a financial crisis, the supply of money created out of fiat currencies tends to run out.

When an economic crisis happens, there are three options available. You can use the Federal Reserve to create more money out of the thin air and distribute it into the market, you can use your own money deposited in savings accounts, or you can exchange your gold, silver or platinum for cash. If you choose to use your own money deposited in the bank, the government will usually backstop the process if needed.

If you choose to use your gold, silver, or platinum for trading and investment purposes, there are some limitations on where you can keep it. You cannot keep it in a bank and you may not be able to sell it anywhere that accepts it.

If you want to have a diversified portfolio of gold, silver and platinum, then a solid investing strategy that you should be using is buying gold and silver that have high premiums and holding them in your account. Whenever a price goes down in the gold and silver markets, they tend to appreciate in value, allowing you to gain profit from their higher premiums and the gains are tax-free.