Gold Will Rise on Currency Collapse, Say Analysts

2020-8-21 23:09

The global COVID-19 crisis has created a currency vacuum that will drive the price of gold up, according to analysts at SkyBridge Capital.

The team believes the global currency market will implode, and gold will fill the gap left behind. The argument is mainly driven by current concerns over the U.S. dollar. The coronavirus has resulted in unprecedented stimulus payments and a significant loss in dollar strength in 2020.

The difficulty, per SkyBridge, is that no other currency has the fortitude to fill the reserve gap the dollar has long held. According to Troy Gayeski, co-chief investment officer and senior portfolio manager:

When you think of currency debasement the question is, what is the dollar going to weaken against, and when you look around the globe, it’s hard to be excited about alternative currencies. So, gold is obviously a natural alternative currency.

Buying the Gold Bug

The report was coupled with news that the company would be buying the precious metal for the first time since 2011. Warren Buffett, a long time gold naysayer, also bought heavily into the gold market this week.

Source: Bloomberg

The allocation of large amounts of capital into the alpha metal represents a significant shift in trading strategy. Investors generally seek out interest-bearing or dividend positions. When inflation makes those returns negligible or negative, gold becomes a good option.

Additionally, gold offers the advantage that it functions as a currency, though is somewhat illiquid. This provides the dual advantage of stability and value, which has likely led to sustained price rises in recent times.

Will Bitcoin Follow Suit?

The new gold rush may also provide some insight into the rise of Bitcoin. The ‘digital gold’ has witnessed dramatic gains to over $12,000 a coin in recent days. To date, it’s still holding above $11,800.

Some would argue that the run-up is being spurred by a rush into assets that can act as an alternative currency, but is divested from dollars. Bitcoin may be perceived as offering this dual functionality.

However, while gold is remarkably difficult to spend, bitcoin has the added advantage of liquidity. The difference between scanning a QR code, and carrying a bar of gold should be obvious. Either way, investors continue to flee the ailing dollar.

The post Gold Will Rise on Currency Collapse, Say Analysts appeared first on BeInCrypto.

origin »

Bitcoin price in Telegram @btc_price_every_hour

Golos Gold (GBG) на Currencies.ru

$ 0.0077733 (-2.90%)
Объем 24H $0
Изменеия 24h: -17.51 %, 7d: -17.17 %
Cегодня L: $0.0077733 - H: $0.0095975
Капитализация $99.238k Rank 999999
Доступно / Всего 12.767m GBG

currency gold analysts global capital team behind

Источник: beincrypto.com

currency gold → Результатов: 126


Goldman Sachs Says U.S. Dollar Could Lose Its Status of World’s Reserve Currency, Bullish on Gold

Coinspeaker Goldman Sachs Says U. S. Dollar Could Lose Its Status of World’s Reserve Currency, Bullish on GoldGoldman strategists said that the fragile economic condition, with interest rate at an all-time low, and the uncertain political scenario, have added to the instability of the USD showing signs of real concerns for it to continue as the world's reserve currency.

2020-7-29 14:15


Фото:

Here’s why one of Wall Street’s most successful hedge fund managers, Paul Tudor Jones is buying Bitcoin

The American hedge fund manager Paul Tudor said his fund has a “low single-digit percentage…in Bitcoin futures,” and he is betting on this digital currency to overcome future monetary inflation as it reminds him of the role gold played during the 1970s where inflation caused great losses in the American economy.

2020-5-8 00:56


Фото:

Gold’s Demand as a Safe Haven Rises in the West But Falls in the East Due to COVID-19: WGC

Trading near a seven-year high, gold is heading for its biggest monthly gain since 2016 as central banks ramp up the stimulus to keep up the economy after being damaged by the coronavirus pandemic. Gold rallied in 2020 as investors sought safe haven amidst the unprecedented monetary stimulus sparked concern about currency debasement. The bullion […]

2020-5-1 20:10


Питер Шифф рекомендует продавать биткоин

-Известный «золотой жук» и биткоин-скептик Питер Шифф заявил, что биткоин нужно «продавать». В своем недавнем твите он пишет: If @Bitcoin can't rally with an emergency 50 basis point rate cut, plus all of the recent stock, bond, currency and gold market volatility, under what circumstances will it rally? If Bitcoin won't go up, why own […] Материал Питер Шифф рекомендует продавать биткоин появился сначала на WHATTONEWS – Новости криптовалют.

2020-3-5 11:40


Фото:

Bitcoin Boost As JPMorgan Casts Doubt On US Dollar’s Future

Bitcoin challenging the US dollar’s worldwide supremacy seems more likely after it emerged that even the country’s biggest bank thinks the status quo cannot last. Central Banks Amassing Gold ‘Makes Sense’ In a report issued July 10, Craig Cohen, a strategist for JPMorgan Chase, said changing habits among non-US central banks are creating a real sense of unease about the dollar’s long-term status.

2019-7-24 13:00


Cryptocurrency is Part of the Global Currency War, Says Federal Reserve Branch Head

Cryptocurrency has found itself on the center stage of the global political sphere over the past several weeks, which first began when Fed Chair Jerome Powell compared Bitcoin to gold. Shortly after this, US President Donald Trump shared his thoughts on BTC, which sparked what appears to be a regulatory crackdown on the nascent markets.

2019-7-20 03:00


Can Digital Gold overthrow the OG store of value, Gold and reign supreme?

Bitcoin’s value was borne out of its limited supply (just like Gold) of 21 million, hence the world’s oldest cryptocurrency is often touted as “digital gold”. When Bitcoin was first conceived in 2008, the world witnessed a myriad of naysayers dismissing the tech and currency, while the optimistic rooted for the crypto-asset to pave the […] The post Can Digital Gold overthrow the OG store of value, Gold and reign supreme? appeared first on AMBCrypto.

2019-7-9 03:30


KaratGold Coin (KBC): Coin Holder Could Exchange Their Coins For Real Gold at “Gold Independence Day” Event In Las Vegas

Gold is money. It is and has been approved on a global scale in more than 194 countries throughout the centuries, therefore asserting itself as a form of currency. In recent times, the significance of relocating assets into a more credible form of investment which would have borne fruit has been lost.

2019-7-9 21:11


Bitcoin can be everything at once; currently it’s best at being a store of value, says Blockstream’s CSO

Bitcoin [BTC], the largest cryptocurrency in the market, has gone from being an electronic cash system to becoming a store of value over the past ten years. The coin has several times been termed as digital gold, with even Grayscale Investments prompting investors to drop gold and be a part of the digital currency revolution […] The post Bitcoin can be everything at once; currently it’s best at being a store of value, says Blockstream’s CSO appeared first on AMBCrypto.

2019-6-14 00:00


Фото:

Op Ed: Debunking Bitcoin Myths: ‘It’s a Ponzi Scheme’

The accusation that bitcoin is nothing more than a Ponzi scheme is perhaps the oldest, longest-standing criticism of the digital bearer asset. The basic idea is that there is nothing of value here and the entire purpose of bitcoin’s existence is to enrich Satoshi Nakamoto and the speculators who bought in for a few pennies or dollars in the early days by tricking others into buying in at a higher price.

2019-6-4 19:03


State Street Global Advisors: Reports Of Gold Investors Flocking To Cryptos Have Been Exaggerated

Reports Of Gold Investors Flocking To Cryptos Have Been Greatly Exaggerated Bitcoin and gold share many similarities, including being used as a currency, transfer of wealth, store of value, and more – they also both can be “mined” for and boast relative scarcity as one of the reasons giving it such value. That scarcity is […]

2019-5-31 21:08


дальше еще 77 новостей →

Партнеры Currencies.ru



Реклама на Currencies.ru

Самое свежее на Currencies.ru