The Ultimate Friday the 13th: Gold Hits $2,600 All-Time High, Bitcoin Investors Left in the Dust
On this "lucky" Friday the 13th, Peter Schiff, the renowned banker and financial expert, declared it a fortunate day for gold investors as the precious metal reached a new all-time high of $2,600. However, Schiff believes that Bitcoin investors, as well as Americans in general, are "out of luck."
According to Schiff, the record-high gold prices are not just a reflection of market trends but also a signal of potential higher inflation, unemployment, rising long-term interest rates, and even a looming recession.
While many are anticipating the Federal Reserve to cut interest rates next week, history shows that gold tends to perform well during periods of monetary change. For instance, in September 2007, when the Fed cut rates for the first time in four years, gold prices surged by 45% over the next six months.
Bitcoin and gold as of 2024
With the Federal Reserve expected to lower rates once again, the anticipation of such shifts is likely to drive gold prices higher. Drawing parallels with July 2019, when the Fed cut rates for the first time in 11 years, gold's value surged by 26.35% over the next year.
Despite being considered by some as "digital gold," Bitcoin has yet to establish itself as a safe haven asset for the majority of market participants. While its deflationary nature and scarcity give it some similarities to gold, cryptocurrency, as a whole, is still viewed as beta to tech stocks and the riskiest assets.
Therefore, the performance of the NASDAQ may be more crucial for Bitcoin than the precious metal at present. Both tech stocks and digital assets are not immune to a potential free fall in the event of a recession.
In conclusion, investors should pay close attention to the movements in gold prices and the Federal Reserve's decisions regarding interest rates, as these factors can have significant implications for their portfolios and financial well-being.