Crypto’s rapid rise means investors need gold, top miner says
The astonishing rise of cryptocurrencies, including red-hot Bitcoin, just handed one of the world’s leading gold miners one more reason to urge investors to buy the age-old haven that is bullion.
“If you’re into cryptos, you want to consider having some gold,” Newcrest Mining CEO Sandeep Biswas told Bloomberg TV after the Melbourne-based company reported earnings on Thursday. Bullion “may act as a bit of a hedge against the volatility of cryptos,” he said.
Bitcoin soared to a record this week as Elon Musk’s Tesla said that it had made a $1.5-billion investment in the digital currency. That move injected fresh vigor into the debate over whether the new product would over time erode gold’s appeal. Biswas said that while the two assets were distinct, owning bullion would benefit cryptocurrency holders as it’s more stable.
“Gold is a different class of investment,” Biswas said. “It’s a tangible asset: you can see it, you can touch it, you can feel it, you can mold it, you can make it into jewelry, whatever you want.”
Gold and Bitcoin can coexist, according to Goldman Sachs Group Inc. While the digital currency may be pinching some demand from the traditional haven, the precious metal’s standing will endure, the bank said in a December note.
Spot gold is about 3% lower year-to-date at $1 841 an ounce after setting a record above $2 000 last year. Bitcoin, which can be prone to major swings, is up more than 50% in 2021, and was holding near $45 000.
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