Gold and Bitcoin, both having significant recent surges, have made many investors take notice in search of opportunities. Just last year, gold experienced an impressive rally, flush with a 35% rise. After such a huge run up, the safe haven has taken off with some steam, leaving experts to gauge where it’s headed next.
David Schassler, head of multi-asset solutions at Van Eck, is cause for gold-tinged optimism. He makes the case that even though gold has pulled back recently, there is still potential for movement up. Schassler even goes so far as to predict that gold prices will hit $5,000 by sometime next year. He argues that the prevailing economic conditions in the United States make this outlook inevitable. He cites “big debt, big spending, big disorder” as factors that will continue to make gold attractive to investors.
“I couldn’t imagine a better backdrop for gold.” – David Schassler
Go-to bear and fellow Hindenburg analyst David Einhorn provides a somewhat less aggressive schedule. He even thinks gold could hit $5,000 by 2026. Though both forecasters have different predictions, both analysts see the same fundamental economic problems ruining investor confidence.
At the same time, Bitcoin has dominated the news with its meteoric rise. The digital currency has continued to skyrocket, up about 60% over the last year. In just the last month, it surged an astounding 10% by itself. Further adopting a bullish long-term view on Bitcoin, Schassler admits that he wants to see Bitcoin doing what gold does.
“Bitcoin is the risky cousin of gold.” – David Schassler
Through a crypto ETF, investors can get the benefits of investing in crypto quickly and easily, while reducing their risk. These ETFs are designed with built-in protection. Specifically, if the value of the underlying assets decreases by more than 20%, an investor’s potential loss is capped at a certain level. This unique feature has caught the attention of more risk-averse investors seeking a safer entry point into the burgeoning crypto market.
Gold prices have dropped off in recent weeks. Schassler is confident that the U.S. government’s fiscal footing will be stable for the foreseeable future. He points out that there seems to be a “bipartisan agreement to do nothing about the deficit until we get to the next crisis,” which further solidifies his belief in gold’s long-term value.
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