Analyst and investor Byron King gave an interview to The Investing News, during which they discussed the current situation in the gold market, as well as the pricing of the yellow precious metal. According to the expert, this summer the price of gold may surpass the $ 2,000 per ounce mark.
According to King, the prospects for gold are closely tied to the value of the US dollar, which is under serious pressure. “If we look to the future, will the US government be able to cut its spending? I don’t think so, ”the expert shared his opinion. “Do you really think the US Federal Reserve will tell Congress to stop spending a lot of money? Otherwise, he will stop printing new money? This will never happen. The printing press will continue to work. "
There is currently an increased demand for physical gold and silver in the precious metals market. The advantage for investors is that the cost of these precious metals is still low compared to their prospects. Byron King recommends that you gradually build up your positions in gold and silver in order to balance your investment portfolio.
Gold vs. bitcoin
The upward trend continues in the bitcoin market. However, before the rise to $ 100,000 is really possible, there is a very important topic to consider: the sustainable production of new bitcoins must meet the requirements of institutional investors.
The social responsibility of companies currently continues to deter them from investing in cryptocurrency, as its mining in some countries takes place in controversial conditions. Despite the hype around Bitcoin, most large institutional investors are still watching from the sidelines and are in no rush to enter the market. Only less than 1% of the world's institutional investors are currently dealing with the crypto market.
In the Asian region, there are a large number of miners who burn coal to generate electricity, which is needed in large quantities to mine the world's main cryptocurrency. Once this problem is resolved, then many institutional investors will transfer part of their capital to Bitcoin.