Gold Prices Continue to Present Solid Long-Term Opportunity
These days, there’s a lot of debate around gold prices and Bitcoin prices.
Investors are asking one question, and rightfully so: Is the money that was supposed to go the gold market going to Bitcoin? In case you didn’t know, the value of one Bitcoin is inching closer to $6,000. In the beginning of 2017, the Bitcoin price was just $1,000.
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There are some who say that Bitcoin prices could even reach $10,000 in the next little while.
Also Read: Bitcoin Price Forecast 2018: 5-Digit Upside a Strong Possibility
Sadly, there isn’t much data out there that could confirm this, but I wouldn’t be shocked if some money is going toward Bitcoin rather than gold. Investors tend to rush to buy assets that are witnessing robust moves to the upside. Gold prices have increased since the beginning of 2017, but the return is nowhere close to that of Bitcoin.
Dear reader, I am not bearish on Bitcoin. I wouldn’t even be surprised if the Bitcoin price reaches $10,000. There’s so much speculation in the cryptocurrency that it’s possible. Also, there’s a limited supply of it, which is causing massive increases in prices.
However, I am asking one question that investors are forgetting to ask: Will Bitcoin be around in the next 10, 20, or 30 years?
Bitcoin is currently being dubbed an alternative currency. But, it’s not being seriously looked at by regulators, central banks, and financial institutions. They are certainly looking at the technology that Bitcoin is built on (blockchain), but not the currency itself. Bitcoin could just be in price discovery mode right now, and nothing more than that. Over time, we will know more.
Why Gold’s Still Worth the Investment
Gold, on the other hand, is widely expected to rise in price. Central banks own it, and it has a solid track record of holding value. There’s an established market for it. Investors could go buy it easily. With Bitcoin, it’s not that easy to own yet, and its security is still an issue.
With all this said, Bitcoin is certainly interesting to watch, although I see the real trade to be in the yellow precious metal. Gold prices remain severely undervalued, and gold is being ignored for all the wrong reasons.
Don’t forget, the fundamentals of the gold market continue to improve.
We continue to see solid demand, regardless of what gold prices do. Buyers continue to add more.
One such example of gold buyers is India. Over the past few months, we have seen stellar gold demand figures from the country. In September, the country imported $1.71 billion worth of gold. (Source: “Quick Estimates For Selected Major Commodities For September 2017,” India’s Ministry of Commerce and Industry, last accessed October 13, 2017.)
Assuming that gold prices for the month of September averaged $1,275, that’s over 1.34 million ounces of gold.
Keeping all this in mind, it might be a big mistake to ignore gold prices as Bitcoin prices are soaring.
