- To be honest, Peter Schiff has finally got the moment to brag about gold.
- Since its sell-off in mid-March, the precious metal has been on an uptrend, up about 22%.
Although during this period Bitcoin gained 136%, for the past two months, while the world’s leading cryptocurrency has been ranging and coming down from hovering around $10,000 to $9k, the bullion has been making its way upwards.
This is why the correlation between gold and bitcoin has been going down since March sell-off, as per Coin Metrics.
Schiff was triggered after BTC proponent Max Keiser conducted a poll on at what price Schiff will panic buy BTC. According to the gold proponent, “no price” is high enough for him and countered with a poll of his own to check the price regarding at which price Keiser would throw in the towel.
Who’s Making New Highs First?
This is a good time for gold, and the yellow metal is close to hitting a new all-time high last put in 2011.
So, Schiff has good reason to celebrate, however small the victory. But this isn't all. While gold is in a bull market, according to him, “Bitcoin is in a bear market and headed much lower,” given that since BTC’s ATH, it’s the price that's still down 50% while gold’s price is up 35%.
And let’s conveniently not talk about that bitcoin is up 180% from its 2018 bottom.
He further believes Bitcoin won't be making a new all-time high.
Just like Schiff is biased, CT is biased as well as in a recent poll conducted by analyst Mati Greenspan, regarding, among Bitcoin, gold, Dow Jones, which will make a new all-time high first, the CT went with BTC despite gold being single digit away from its peak. He said,
“I find it tough to swallow that most of you think bitcoin will make a new ATH before gold. Gold is literally $150 away right now. But… these are the results.”
— Mati Greenspan (@MatiGreenspan) June 24, 2020
However, in CT’s favor, Bitcoin tends to have big moves and it could very well jump to new highs in a very short amount of time.
The gold price has been on an uptrend ever since the global central banks started pumping trillions in the market to prop up the coronavirus ravaged economy.
The last time governments’ printers went brrr, was in the aftermath of 2008 that led gold prices to a new high in the following years. Back in 1976 through 1981, was when capital markets were awash in credit and precious metals rallied.
The recent surge in the coronavirus confirmed cases is also propping the yellow metal’s prices while stock markets step down as investors’ risk appetite gets a beating. More than 10.26 million people have been reported to be infected by the novel coronavirus globally. Edward Moya, senior market analyst at OANDA said,
“We might see gold breaking the $1,800 level fundamentals for gold are quite strong with rising coronavirus cases, no vaccines yet and stimulus from major central banks globally leading to concerns of inflation.”
The risk-off sentiment is helping gold maintain its bullish momentum but at the same time, the uptrending US dollar is hogging the safe-haven limelight from gold.
Also, the US presidential election is starting to impact the markets which could further shake up the gold market. Capital Economics chief U.S. economist Paul Ashworth said,
“Trump's approval ratings have taken a hit from his mishandling of the coronavirus pandemic – including the recent surge in infections in the south and west of the country – and the wave of protests in response to the death of George Floyd.”
Why do people keep attacking me for saying that Trump is better for stocks than Biden?!
This is not a political statement, it's a fact!!!
Trump is pro-business and markets. Biden will raise corporate and wealth taxes. pic.twitter.com/T93k5WKHDw
— Mati Greenspan (@MatiGreenspan) June 28, 2020
Interestingly, these factors that are driving gold’s bull rally also makes a case for bitcoin.