Topic: Bitcoin is not taking demand from gold says Goldman Sachs (Read 170 times)
It's good that someone has finally come out in the open and said this. Some people seem to think that each is out to kill the other just because Bitcoin is being touted as "digital gold." They do share some similarities, but are vastly different as far as investments go. They are not in competition, and you don't have to pick one over the other. You can have both, though the truly rich are more likely to gravitate towards gold, and the general population towards Bitcoin.
He might be correct, who knows?
We can be certain that a big chunk of future gold buyers will go straight to bitcoin and never have gold cross their mind. Google trends are telling us this. It's only gonna accelerate.
We can be certain that a big chunk of future gold buyers will go straight to bitcoin and never have gold cross their mind. Google trends are telling us this. It's only gonna accelerate.
I've always fancied having a vault full of gold like good ol Scrooge but that's unlikely to happen. Bitcoin however, now that's something that's still affordable, at least by comparison. Easier to buy small units of it.
He might be right about AU and BTC having a different investor pools. The smallfolk would find it easier to get their hands on some bitcoins.
He might be correct, who knows?
We can be certain that a big chunk of future gold buyers will go straight to bitcoin and never have gold cross their mind. Google trends are telling us this. It's only gonna accelerate.
We can be certain that a big chunk of future gold buyers will go straight to bitcoin and never have gold cross their mind. Google trends are telling us this. It's only gonna accelerate.
https://www.ft.com/content/7c025b17-beba-36cc-9145-26db83a838d2
Quote
Goldman Sachs has answered the question many commodities investors are asking. And it’s a No, bitcoin is not sapping demand for gold, despite its explosive trajectory.
Jeffrey Currie, global head of commodities research for Goldman, argues that the investor pools for gold and bitcoin are “vastly different”. For starters, gold investors are automatically covered by anti-money laundering and counter-terrorist financing regulations when they use ETFs, futures or commodity indices. Bitcoin trading, however, is not regulated in the same way, throwing up regulatory hurdles for professional investors.
Bitcoin surged to a record high of $17,270 on Monday, according to Reuters data, up from around $1,000 at the beginning of the year as Cboe Global Markets launched bitcoin futures trading. Gold, on the other hand, slipped to its lowest level since mid-July on Monday, ending the day at $1,242 an ounce.
He added that there has been “no evidence of a mass exodus from gold”:
Second, there has been no discernible outflow of gold from ETFs. Indeed, total known gold ETF holdings recently reached their highest level since mid-2013 (currently up 12% YTD)
Jeffrey Currie, global head of commodities research for Goldman, argues that the investor pools for gold and bitcoin are “vastly different”. For starters, gold investors are automatically covered by anti-money laundering and counter-terrorist financing regulations when they use ETFs, futures or commodity indices. Bitcoin trading, however, is not regulated in the same way, throwing up regulatory hurdles for professional investors.
Bitcoin surged to a record high of $17,270 on Monday, according to Reuters data, up from around $1,000 at the beginning of the year as Cboe Global Markets launched bitcoin futures trading. Gold, on the other hand, slipped to its lowest level since mid-July on Monday, ending the day at $1,242 an ounce.
He added that there has been “no evidence of a mass exodus from gold”:
Second, there has been no discernible outflow of gold from ETFs. Indeed, total known gold ETF holdings recently reached their highest level since mid-2013 (currently up 12% YTD)
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