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Gold and Crypto

Gold has been going up recently and is now trading at all time highs measured in USD. It reached all time highs in other currencies as well. Cryptocurrencies, and specifically Bitcoin is also trading at an all time high. Perhaps these moves have to do with the fact that governments around the world have printed a lot of money and we are witnessing the fiat currency system debasement. Perhaps it has to do with the fact that the U.S. economy is adding $1Tn of debt every 100 days. In any event, as you can see in the table below, gold and Bitcoin seem to work as a hedge against US dollar weakness and offer diversification benefits against major indices/ asset classes, which is not easy to find these days. This could be a short term phenomenon but the trend appears to be powerful and the flows seem to indicate it can continue.


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