• Bloomberg analyst Mike McGlone believes that gold may break past its longstanding $2000/oz barrier this year due to the global banking crisis.
• Gold, US Treasuries and Bitcoin are being seen as havens for investors amidst market volatility.
• Both gold and Bitcoin have seen strong surges since the Federal Reserve’s bailout of Silicon Valley Bank earlier this month.
Gold’s Reinvigoration
Bloomberg analyst Mike McGlone believes that gold may break past its longstanding $2000/oz barrier this year due to the global banking crisis. He argues that baby boomers are finding secure alternatives in US Treasuries, gold and even Bitcoin in response to increasing economic uncertainty. The surge of both gold and Bitcoin after the Federal Reserve’s bailout of Silicon Valley Bank is a testament to their safe haven status amongst investors amid market volatility.
The Longstanding Resistance
Gold has consolidated narrowly beneath the $2000/oz resistance level since 2020, however it appears poised to finally break through it this year according to McGlone. Meanwhile, Bitcoin has surged from under $4000 in March 2020 to an all-time high of $69,000 in 2021, prompting major investors to label the latter a superior asset as compared to gold on attributes such as “sound money”, security and scarcity.
Comparing Gold & Bitcoin
The two assets have been often compared on their soundness and security; while bitcoin is secure thanks largely due to blockchain technology, gold is often viewed as more reliable because its intrinsic value does not rely on any government or central authority – a sentiment echoed by McGlone himself who believes that investors will increasingly look towards alternative assets such as gold during times of economic duress.
Implications for Investors
With both asset classes performing well over recent months, investors should consider diversifying their portfolios with investments into both bitcoin and gold going forward – taking caution against putting too much emphasis on either asset class alone due to potential macroeconomic shocks that could affect either positively or adversely depending on circumstances at play at any given time.
Conclusion
Despite its late start in comparison with bitcoin which has already broken through multiple resistance levels over recent years, it appears more likely than ever before that gold will be able overcome its own long-term resistance level of 2000/oz this year – thus allowing both precious metals and cryptocurrencies alike to reap rewards for those seeking safety from mounting macroeconomic pressures due primarily but not exclusively related to the banking sector worldwide.