logo |

News

    Home   >     Industry    >     Main body

    Gold and Bitcoin Won’t ‘Cannibalize’ Each Other: Goldman Sachs Analysts

    Abstract:Gold and Bitcoin Won’t ‘Cannibalize’ Each Other: Goldman Sachs Analysts

      

    ttt.jpg

      The dueling commodities inhabit different ends of the investor spectrum and can coexist in a portfolio, the analysts said.

      Bitcoin isn‘t going to eat gold’s lunch anytime soon, according to Goldman Sachs analysts. But here‘s the kicker: They said gold won’t be displacing bitcoin, either.

      “In an environment of broadband dollar weakness and still very low and negative real rates we do not see either asset cannibalizing each other and see enough room for both,” wrote four Goldman analysts in a Wednesday research note obtained by CoinDesk.

      The note, predominately a rather bullish take on gold‘s 2021 trajectory, cast the two commodities as inhabiting different ends of the investment spectrum: Gold remained the “defensive” play while bitcoin (BTC, +1.69%) was more “risk-on.” Bitcoin “serves a different role in portfolios vs. gold,” the analysts said, primarily because of the crypto’s legendary volatility.

      They attributed golds underperformance last year to a rotation into riskier asset classes but did not elaborate on what role bitcoin may played had in that move, as JP Morgan did last December.

      On the correlated assets front, the analysts steered clear of comparing gold directly to bitcoin. (That correlation turned negative in December.) But they noted a very strong correlation between bitcoin and non-precious metals – copper, tin, zinc – that have moved steadily upward since October.

      “Since the end of last year bitcoin has displayed a pretty tight correlation with base metals as both act as risk on inflation hedges with appealing long term growth stories,” the analysts wrote.

      Goldman‘s analysts said cryptocurrencies are uniquely sensitive to sudden, investor- and influencer-driven price movements. They pointed to Ripple’s XRP (-2.7%) token, which tanked as word of the U.S. Securities and Exchange Commissions unregistered securities lawsuit began to spread (the price has largely recovered, however).

      ------------------

      WikiFX, the world's No.1 broker inquiry platform!

      Use WikiFX to get free trading strategies, scam alerts, and experts experience! https://bit.ly/2XhbYt5

    7785.PNG

    Latest News

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand

    United States Dollar

    • United Arab Emirates Dirham
    • Australia Dollar
    • Canadian Dollar
    • Swiss Franc
    • Chinese Yuan
    • Danish Krone
    • Euro
    • British Pound
    • Hong Kong Dollar
    • Hungarian Forint
    • Japanese Yen
    • South Korean Won
    • Mexican Peso
    • Malaysian Ringgit
    • Norwegian Krone
    • New Zealand Dollar
    • Polish Zloty
    • Russian Ruble
    • Saudi Arabian Riyal
    • Swedish Krona
    • Singapore Dollar
    • Thai Baht
    • Turkish Lira
    • United States Dollar
    • South African Rand
    Current Rate  :
    --
    Amount
    United States Dollar
    Available
    -- United States Dollar
    Risk Warning

    The Database of WikiFX comes from the official regulatory authorities , such as the FCA, ASIC, etc. The published content is also based on fairness, objectivity and fact. WikiFX doesn't ask for PR fees, advertising fees, ranking fees, data cleaning fees and other illogical fees. WikiFX will do its utmost to maintain the consistency and synchronization of database with authoritative data sources such as regulatory authorities, but does not guarantee the data to be up to date consistently.

    Given the complexity of forex industry, some brokers are issued legal licenses by cheating regulation institutes. If the data published by WikiFX are not in accordance with the fact, please click "Complaints "and "Correction" to inform us. We will check immediately and release the results.

    Foreign exchange, precious metals and over-the-counter (OTC) contracts are leveraged products, which have high risks and may lead to losses of your investment principal. Please invest rationally.

    Special Note, the content of the Wikifx site is for information purposes only and should not be construed as investment advice. The Forex broker is chosen by the client. The client understands and takes into account all risks arising with Forex trading is not relevant with WikiFX, the client should bear full responsibility for their consequences.