April 2023 Newsletter: Alternative Assets Rally In March Amid Banking Crisis; Only the Beginning?

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Last Updated on: 7th April 2023, 09:56 am

The last time the banking sector was in crisis, the price of gold surged over 25%. That was between October 2007 and March 2009, when the collapse of Lehman Brothers precipitated a global financial crisis and recession that defined a generation. 

With the bankruptcy of Silicon Valley Bank and Europe’s Credit Suisse in dire straits, we’ve seen alternative asset markets respond similarly to the late-2000s crisis. 

Gold is up nearly 7% over the past month, and silver is up almost twice that—gaining almost 13% since early March. And we may just be getting started. 

Let’s take a look at how precious metals and cryptocurrencies have performed relative to the stock market over the past 30 days (starting March 4th):

• Gold: +6.96% ($2,022)
• Silver: +12.82% ($25.00)
• Platinum: +1.70% ($16.64)
• Palladium: +0.45% ($6.52)

• Bitcoin: +28.13% ($28,182)
• Ethereum: +19.21% ($1,868)

• S&P 500: +1.11% ($4,093)

(Note: All figures above are represented in U.S. dollars and all percentages depict asset price changes according to their March 4 to April 4, 2023 spot prices.)

While the spot price of gold finally eclipsed the elusive $2,000 threshold, marking the first time it’s broken this resistance point since March 2022, silver saw the fastest month-over-month growth in nearly three years. Platinum-group metals were no slouch, either, with both palladium and platinum in the green on the month.

Beyond Precious Metals: Crypto Soars in March; Dollar Under Threat?

The precious metals market is on fire, and it only took an international banking meltdown and widespread global de-dollarization to get there.

Believe it or not, precious metals weren’t even the stars of the show this month. That title goes to cryptocurrencies, who rallied to heights we haven’t seen in almost a year. 

Bitcoin soared above the $29,000 mark before settling around $28,100 in mid-March, capping off an excellent month for the world’s largest cryptocurrency. Bitcoin skyrocketed nearly 30% this past month, allowing whales to cash out at margins they haven’t seen in over a year. 

How does Ethereum’s month compare? The Ether token, which is the backbone of the eponymous DeFi ecosystem, jumped to its highest price levels since August. This comes in anticipation of Ether’s Shanghai update, finalizing the token’s long-awaited transition to a proof-of-stake consensus model due in mid-April.

It looks like the crypto market is finally gaining momentum after six particularly harsh consecutive months for the asset class. 

For us, one of the more interesting takeaways this month is that crypto asset prices demonstrated that they’re not tethered to broader market conditions. Interest rates stayed constant and the stock market more or less stagnated this month, yet the digital currencies rallied on—proving that easy money and stock surges aren’t the sole fundamentals driving Bitcoin forward. 

According to a Coindesk report, cryptocurrencies are now “well inside a bull market”. This suggests that the gains we saw in March will likely have some sticking power into the spring.

In light of banking sector instability, diversification is top mind for many American investors. With the crypto winter thawing, and the precious metals markets heating up, now might be a good time to shore up your position in alternative assets. 

If you’re interested in managing risk in your investment portfolio, you may want to consider opening a self-directed IRA with one of our top-ranked American providers. Whether you want to add physical gold or silver bullion, or Bitcoin or Ethereum tokens, a self-directed IRA gives you the financial freedom to invest in the assets you need.