Fun

News Feed - 2023-09-30 02:09:00

Marcel Pechman6 hours agoCosto sells out of gold bars, but is it a better investment than Bitcoin?Gold bars recently sold out at Costco, reflecting investors’ souring mood about the economy. Is there a silver lining for Bitcoin?4887 Total views10 Total sharesListen to article 0:00Market AnalysisJoin us on social networksCostco has made headlines this week after it rapidly sold out of gold bars. In times of economic uncertainty and rising inflation, it"s no surprise that investors are turning to traditional safe-haven assets like gold. The question is whether gold’s performance will eventually catapult its price above $2,050, a level last seen in early May.


In the past 12 months, the price of gold has surged by an impressive 12%. This rally has been partially fueled by the Federal Reserve’s efforts to combat inflation by maintaining higher interest rates, a move that benefits scarce assets like gold. While gold’s performance is commendable, it’s essential to put it into perspective.Gold (yellow) vs. Bitcoin (orange), S&P 500 (green) and WTI oil (black), last 12 months. Source: TradingView


Over the same period, gold’s returns have roughly matched those of the S&P 500, which saw a gain of 15.4%, and WTI oil, which increased by 12%. However, these gains pale in comparison to Bitcoin’s (BTC) staggering 39.5% rise. Still, it’s important to note that gold’s lower volatility at 12% makes it an attractive choice for investors looking to manage risk.Risk-reward scenarios favor gold


One of gold’s strongest selling points is its reliability as a store of value during times of crisis and uncertainty. Gold’s status as the world’s largest tradable asset, valued at over $12 trillion, positions it as the primary candidate to benefit from capital inflows whenever investors exit traditional markets like stocks and real estate.Gold (yellow) vs. Bitcoin (orange), S&P 500 (green) and WTI oil (black), Feb/Mar 2020. Source: TradingView


For example, at the height of the COVID-19 pandemic, gold only dipped by 2.2% in the 30 days leading up to March 24, 2020.


According to data from the World Gold Council, central banks have been net buyers of gold for the second consecutive month, adding 55 tons to their reserves, with notable purchases by China, Poland and Turkey.


Bloomberg reported that Russia plans to bolster its gold reserves by an additional $433 million to shield its economy from the volatility of commodity markets, especially in the oil and gas industries.200 years of gold production. Source: Visual Capitalist


Taking a closer look at production figures, Visual Capitalist estimates that approximately 3,100 tonnes of gold were produced in 2022, with Russia and China accounting for 650 tonnes of this total. The World Gold Council also predicted that if gold prices continue to rise, total production could reach a record high of 3,300 tonnes in 2023.


One crucial metric to consider when evaluating gold’s investment potential is its stock-to-flow ratio, which measures the production of a commodity relative to the total quantity in existence.


Related:Bitcoin price holds steady as S&P 500 plunges to 110-day low


Gold’s stock-to-flow has remained stable at around 67 for the past 12 years. In contrast, Bitcoin has experienced three scheduled halvings, effectively reducing its issuance, and currently boasts a stock-to-flow ratio of 59. This suggests that Bitcoin has a lower equivalent inflation rate compared to the precious metal.Bitcoin can outperform gold even with lower inflows


Bitcoin’s performance could surpass gold’s as the U.S. government approaches a shutdown due to reaching the debt limit, causing investors to seek alternative scarce assets. Bitcoin’s $500 billion market capitalization makes it easier for the price to jump even if its inflow is much smaller. Additionally, central banks could be compelled to sell their gold holdings to cover expenses, further boosting Bitcoin’s appeal.


There’s also the possibility of new gold discoveries. While gold remains a stalwart in the world of safe-haven assets, Bitcoin’s impressive gains and lower equivalent inflation rate make it a strong contender for investors seeking alternative stores of value. Despite this, the ongoing economic uncertainty and the Federal Reserve’s monetary policies will continue to benefit both assets.


This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.# Bitcoin# Cryptocurrencies# Russia# China# Gold# Bitcoin Price# Markets# Stocks# Inflation# Market Analysis# Oil and GasAdd reactionAdd reactionRead moreWho invented NFTs?: A brief history of nonfungible tokensHow AI is changing crypto: Hype vs. realityBitcoin ETFs: A $600B tipping point for crypto

News Feed

Uzbekistan Collects Over $300,000 From Crypto Sector
Uzbekistan Collects Over $300,000 From Crypto Sector While operations with digital assets are not taxed in Uzbekistan, the government is receiving a growing amount of revenues from
Are Bitcoin Retail Traders Back In The Market? On-Chain Data Suggests So
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
End of August’s NFT Sales Tapped All-Time High at $1 Billion, Last Week’s NFT Sales Hit $821 Million
End of August"s NFT Sales Tapped All-Time High at $1 Billion, Last Week"s NFT Sales Hit $821 Million Data shows that non-fungible token (NFT) assets continue to break record sales
Bears Will Be Washed Out Of Bitcoin If This Happens
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Pop Star Justin Bieber Buys Bored Ape NFT for $1.29 Million, Pays More Than 300% Above Floor
Pop Star Justin Bieber Buys Bored Ape NFT for $1.29 Million, Pays More Than 300% Above Floor The Canadian singer Justin Bieber has purchased a Bored Ape Yacht Club (BAYC) non-fungi
Wyckoff Cycle Shows Where We Are In The Market And When Altcoin Season Will Begin
Este artículo también está disponible en español. The crypto market could be getting ready to enter the highly anticipated altcoin season. As the market rides the bull wa
Mastering Emotions and Managing Risk in Cryptocurrency Trading
When it comes to trading, there are several steps you can take in order to reduce your exposure to the market extremes of price volatility. A combination of both technical and funda
Fractal ID postmortem ties breach to 2022 password hack
Amaka Nwaokocha1 hour agoFractal ID postmortem ties breach to 2022 password hackThis breach highlights the ongoing challenges in maintaining data security, especially in today’s centralized storage systems.505 Total vi
Crypto Businesses Ask 27 EU Finance Ministers to Loosen Disclosure Requirements
Crypto Businesses Ask 27 EU Finance Ministers to Loosen Disclosure Requirements Forty-six European crypto businesses and organizations have asked finance ministers in 27 European c
Demand for Gold-Backed Tokens Brings Premiums as Precious Metal’s Value Jumps Higher
Demand for Gold-Backed Tokens Brings Premiums as Precious Metal"s Value Jumps Higher While stocks and cryptocurrency markets have floundered during the last week, the price of the
US Economy at Risk of Crash Landing, Allianz Warns
US Economy at Risk of Crash Landing, Allianz Warns Allianz, one of the world’s largest insurers, has warned that the U.S. economy is headed toward a crash landing. “We expect t
Daniele Servadei7 hours agoBinance caves to pressure over coin listings, scoring a win for privacyThose of us in Italy and surrounding countries will be allowed to continue trading Zcash, Monero and other coins that Bina