Goldman suggests to buy Gold - A measure to combat inflation

Goldman Sachs advises clients to acquire gold in order to protect their funds against rising inflation and interest rates.

Gold: time to buy the defensive real asset.

When rising inflation erodes the value of the currency, precious metals are viewed as a method to safeguard wealth.

The US Federal Reserve said this week that interest rates might rise in March to combat increasing costs.

‘Gold has remained very resilient during the recent increase in US real rates,’ the investment banking giant said. ‘In our view, this is due to gold’s status as both an inflation-hedging and a defensive asset.’

Analysts have raised their six-month forecast to $2,050 (£1,526) a troy ounce. It is currently trading at about $1,800.

They noted that Bitcoin has fallen with high-growth equities in recent weeks, shedding a fifth of its value since the beginning of the year to trade at around $28,100.

The apparent U-turn comes after other bank experts predicted earlier this month that Bitcoin will overtake gold in market share as more individuals piled into the cryptocurrency, forecasting its value would reach $100,000 in five years.

Two observations:

  1. Both the Federal and the IMF are looking to regulate Crypto this year which will bear the price.
  2. When quantum computing becomes popular and it becomes easy to hack blockchain wallets, all cryptocurrencies (including NFTs) will be useless.