In an interview with kitco.com, US Global Investors CEO Frank Holmes said that gold has historically performed well during political crises. He thinks the price could rise as much as 50% higher.
“… when you look at gold, its breadth and depth, historical significance as a wonderful asset is really showing up when you have war. Bitcoin is a new phenomenon, it’s… What, over a decade old? It’s new and its ecosystem around the world is new. Yes, it’s widely embraced by generations x, y and z–millennials in particular–but gold has a phenomenal historical significance that whenever there’s big inflation or there’s political turmoil then gold is the asset class of choice.”
It may sound like he is dismissing the youth as an influence, but he points out that the gamers are busy collecting currency, even mining it. They can generate thousands of dollars in a year. There are tens of millions of people doing this and it’s all tied to the growth of digital and gaming and now the metaverse.
Holmes, also Executive Chairman of HIVE Blockchain Technologies, believes gold is very undervalued. It should be worth anything from $4000 to $7000 depending on how much you factor in money printing number data. He said, “I feel comfortable that gold can easily run to $2,500 or $3,000”.
He just doesn’t see Bitcoin as a go-to safe haven asset right now compared to gold. Maybe later when more regulation has been sorted out, adoption will continue. Bitcoin itself is designed to be used freely so we have to assume he is talking about regulation of the centralized exchanges and other services, not Bitcoin itself.
Gold or Bitcoin?
The context in which Holmes’ opinions are being presented is quite restrictive. It’s either gold or bitcoin. Gold is going to 3k and bitcoin–well, forget about it. Holmes clearly doesn’t share this view. He gives some good reasons why gold might get to 2,500 to 3,000 dollars, but as he points out, this would be because of overprinting of fiat money.
Unlike many, Holmes understands that gold is not really going up in value, only in price. It will still buy the same things it would buy 100 years ago, no more nor less. It’s the dollar that is plummeting towards zero. Bitcoin, on the other hand, is increasing in both price and value.
The real question here is what’s going on while we are distracted by wars and rumours of wars? The very foundations of our society are being dismantled in a “great reset” none of us asked for.
Gold may be a safer bet in times of war, but bitcoin can help us to build a world where warmongers cannot print money to fund their insanity. Bitcoin could help prevent war. That’s a much better bet!