As you look across the economic landscape, you will find dumpster fires as far as the eye can see. The commercial high rise real estate industry is running around with its hair on fire. More and more people foresee that working from home will become the norm even after the pandemic goes away. The car industry is also seeing that, since governments are in debt more than ever, infrastructure won’t be changing anytime soon to supplement charging stations around the country. Lots of places in the markets are seeing success but it’s so limited that it’s virtually the same everywhere you look. Out of all of this chaos and pain, there is an odd couple that is standing strong. So what’s the deal with BTC and gold?
Gold against USD
Ever since the Nixon Shock, gold has been in a war against the dollar. The USD has become a currency of struggle and safety, all at the same time. For the FED, QE has led to a massive accumulation of debt and that has meant the US Dollar has weakened a lot. Even though this has occurred, it’s still the dominant currency for those looking to safe haven their investments, especially for those buying stock.
Gold has been used as a hedge against the dollar for many decades and now since the pandemic began, it has gained a huge foothold. Now is the time to buy gold coins online as many websites are offering great services and prices for unique minted coins. No matter what has been done, whether it’s QE4, stock market rallies, low-interest rates, economic stimulus, and even news of a vaccine in the pipeline, gold remains strong. It is hovering around $1,900 per troy ounce and to put this into perspective, it was $1,300 just a few months ago!
BTC does it again
BTC has really bitten back against the doubters, and bitten back hard! At its release peak and first-year performance, it reached as high as $16,000. However, this was short-lived and thus, the pundits on economic news channels began to say that Bitcoin was just a fad. They said that it would have boom and bust cycles until one day, it just went bust. Well, right now, it’s sitting pretty at $17,700. That is simply staggering, for something that people like Peter Schiff are railing against all the time.
But why? Bitcoin is also being used as a hedge against the dollar. The dollar is simply in its twilight years, with the endless printing and debt accumulation finally taking hold. It’s like a slow car crash and the world’s markets have finally accepted it. That’s why people are leaving the dollar for BTC, gold, and things like real estate.
It’s quite clear that both gold and BTC will remain at the center of the foreseeable future in economic terms. They will be safe havens for wealth, not investment necessarily. Whatever you own, if you want to retain as much value as you can, you need to buy as much gold and BTC you can.
Gold has the promise of rising higher, but BTC seems to be waiting for the next round of horrible economic news to break past $18,000. If the pandemic goes into March, it’s not unreasonable to suggest it could break twenty grand!