The gold price had to give up again yesterday and in the future the gold price dipped practically precisely to the mark of 1,700 dollars, but was able to make up at least part of the losses. Bloomberg reports the longest daily streak of gold ETF outflows since Donald Trump was elected US president. The main reason for this is the rising yields on US government bonds, which are now also having a negative impact on the stock markets. Meanwhile, a bitter battle is raging on Twitter between Bitcoin advocates and gold supporters.
Billionaire Mark Cuban and economist Peter Schiff recently got into a fight on Twitter. While Schiff is not a big fan of Bitcoin, Cuban is a fan of the cryptocurrency. He is now backing out and describes gold as dead. And what’s more: Cuban is also calling the entire jewelry industry into question. “Do we really need gold jewelry?” He asks in a tweet and then enumerates the advantages of Bitcoin that enable free trade.
“What we see built with crypto today is just a proof of concept. As technology continues to get better, cheaper, and faster, there will be new applications and maybe even something that will replace what we know today as crypto. But gold will never change. So it will die as an SOV [store of value]. “
Gold has been written off several times in the past. A few years ago, when gold was trading around $ 1,200, an analyst described it as a “barbaric relic” and wrote off the price of gold. This was followed by a rally to over $ 2,000 an ounce. But I think Mark Cuban mentions exactly the point that is important to gold investors: Gold does not change and has been a safe haven for wealth for thousands of years. And that really doesn’t have to be a bad thing. Personal note: Why Bitcoin and gold investors cannot imagine that both can co-exist, I do not understand.