Investors are now choosing cryptocurrencies over gold, with data indicating outflows from the biggest gold exchange-traded fund so far this year.
- Bloomberg data indicated that over $10 billion has been unloaded from the biggest gold ETF this year, amid the selling down of funds’ physical gold hoards.
- The price of gold has already declined 6.1% to $1,782 a troy ounce on Wednesday, while Bitcoin has doubled in price to hit a record high of over $67,000 this week.
- Economists read the data as indicating that investors are shifting to cryptocurrencies, as Bitcoin is currently attracting money away from gold with inflation being one of the catalysts.
Some investors have started to view cryptocurrencies as an inflation hedge, even if the digital tokens were non-existent during the last serious inflation issues.
Source: Financial Times