Investors Move $10 Billion Away From Gold And Choose For Bitcoin As Safe Haven
For thousands of years, whenever kings, knights and other feudal lords wanted to preserve their wealth, they would store it in gold. The precious metal has been able to hold off attacks for its crown by silver, bronze, platinum, the Japanese Yen, the US dollar and the European Euro. All the while, all these investments have duked it out for the title of ultimate safe haven investment. Gold has held on tight.
Ever since an anonymous programmer invented Bitcoin back in 2008 though, that position could be coming to an end though.
Paul Tudor Jones, the FT and Forbes all agree
In the past few years, the sentiment as to what is a safe haven investment has changed. Major media outlets like the Financial Times and Forbes now all agree that Wall Street investors are lining up to buy crypto instead, given that it seems a better hedge against inflation. Legendary investors like Paul Tudor Jones, one of the first to admit last year he had included Bitcoin in his portfolio, openly admitted to CNBC that crypto is the better investment at this moment.
In his overview, Paul Tudor Jones even left out gold as an opportunity completely, stating that the ultimate economic problem is inflation. Paul said:
Inflation can be much worse than what we fear. We have the demand side of the equation … and that is $3.5 trillion greater than what it normally would have … just sitting in liquid deposits.
They can go into stocks, or crypto, or real state, or be consumed, so that’s a huge amount of dry powder just sitting waiting to be utilized at some point, which is why inflation is not going away.
Already, some $10 billion has been pulled from the biggest gold exchange traded fund this year and funds’ physical gold hoards have also been selling down. The price of gold has declined 6.1 per cent this year to $1,782 a troy ounce earlier this week. Meanwhile Bitcoin doubled in price this year to reach another record high (it touched $67,000 this week before retreating).
"Gold has failed, in recent weeks, to respond to heightened concerns over rising cost pressures, and the shift away from gold ETFs into Bitcoin funds has gathered pace.“ https://t.co/usoFboN64k— The Wolf Of All Streets (@scottmelker) October 21, 2021
John Hathaway, a trader in precious metals did as much as admitting defeat, stating that:
There is zero interest in our strategy right now. The bitcoin crowd see the same things I see in terms of money printing risks of inflation.
As Dylan noted in the 1960s already, the times they are a-changing.
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