Bitcoin investors are moving to gold: Van Eck
Van Eck, CEO of Van Eck Associates, recently said that Bitcoin investors are moving from Bitcoin to gold.
Van Eck in a recent interview with CNBC said “that Bitcoin pulled a bit of demand away from gold last year, in 2017.” Later, he added, “Interestingly, we just polled 4,000 Bitcoin investors and their number one investment for 2019 is actually gold. So gold lost to Bitcoin and now it’s going the other way.”
Bitcoin has not been able to hit above $4,000 in three weeks and possibly making the investors rethink their decision. During the same interview with CNBC, Tim Seymour, the founder and chief investment officer of Seymour Asset Management also spoke about his view on Bitcoin. He, in his statement, mentioned that attracting investors for Bitcoin is from gold will be difficult.
He stated, “Not only have we lost all liquidity on the underlying [commodity] but truly outside of the existential blockchain argument, it’s been very difficult to argue store of value which is really what we started hearing about.” Seymour added, “Gold is a store of value and there’s no disputing that.”
The firm of Van Eck created what well known gold ETFs, known as GDX gold miners ETF and GDXJ junior gold miners ETF. And, according to Eck those assets “have been acting tremendously well over the last two or three months.”
“In the majority of the days in Q4 when the S&P was down, GDX was up,” Van Eck explained “that decoupling makes me really excited about gold shares as a diversifier.” According to CNBC report, in the fourth quarter, the GDX ETF grew by 14 percent. Reportedly, that’s the best performance since Q2 of 2016. Moreover, this year, the GDX is up below 1 percent, as the S&P 500 went up by 6 percent.
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