Daily Gold Market Report
Navigating Investment Waters:
Gold’s Enduring Legacy in the Era of Bitcoin ETFs
(USAGOLD – 1/12/2024) Gold and silver prices are sharply up in early trading Friday, on safe-haven buying following news of U.S.-British air strikes against Houthi rebels in Yemen. Gold is trading at $2062.01, up $33.10. Silver is trading at $23.45, up 70 cents. The SEC approved 11 Bitcoin spot ETFs that began trading today with a record $4.6 billon exchanging hands. Charlie Morris of ByteTree highlights how gold ETFs transformed the gold market, the rise of Bitcoin ETFs, and the comparative flows between gold and Bitcoin. The question of gold versus bitcoin is set to become more prominent, and in light of this important occasion, examining Graham Tuckwell’s responses to this query, as outlined in his article in the Alchemist, is merited:
Are gold and bitcoin similar?Yes, in some ways. They have a near fixed supply, earn no return, are cheap to hold and are not fiat currencies.Will gold go more electronic and bitcoin more mainstream?Yes. They are coming from opposite ends of the spectrum and there will be some convergence and overlapping.Will bitcoin replace gold as a safe-haven investment?No. Institutional investors have always wanted allocated gold in their ETFs as it is more secure, and they want to be able to see it is there in the vault. It cannot just be wiped out on a computer screen.Will both gold and bitcoin be sought after?Yes, whilst yields remain low to negative and, better still, if interest rates rise and bond prices fall. Maybe a bet on both gold and Bitcoin will work, but for security, a gold ETF for me please.
