Sandeep Biswas, managing director and CEO of Newcrest Mining, believes cryptocurrency investors should consider buying gold to protect themselves from the wild price swings of cryptocurrencies like bitcoin (BTC).
If you’re into crypto, you should think about gold, Biswa said Thursday on Bloomberg Television, noting that gold is less volatile than crypto.
The director stressed that gold is a different asset class. It is a material possession: You can see it, touch it, feel it, shape it, make jewelry out of it, whatever you want.
Biswa pointed out the scarcity of gold and said: There are only a few things you can find […] while cryptocurrencies, you see them spreading everywhere.
The mining expert said the overall momentum of the gold price remains strong despite global inflation and money printing by government stimulus programs to fight the COWID-19 pandemic.
Biswas’ comments came amid a small spike in volatility in cryptocurrency markets. After the release of Bitcoin on the 9th. February had reached a new all-time high of $48,000, a correction then took place with the price of BTC dropping below $45,000 the next day. According to Cointelegraph, bitcoin’s volatility has increased so far this year due to the recent price rally, nearly reaching the volatility level of Black Thursday, when the price of bitcoin fell 40 percent from $9,000 to $5,200 in a matter of days.
Amid highly volatile movements in the cryptocurrency market, gold is rising steadily, boosted by a weakening US dollar and hopes for a US economic stimulus package. At the time of writing, spot gold is trading at $1,842 per ounce, up slightly by 0.1% over the past 24 hours.
In December 2020, US investment bank Goldman Sachs suggested that bitcoin’s parabolic rise by the end of 2020 would not hurt traditional assets such as gold. We see no evidence that the bitcoin rallies are cannibalising the gold bullion market and believe the two can co-exist, the bank said.
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