Digital currency is turning into the most recent talk among the investing group. Be it Bitcoin, Bitcoin Cash, Ripple or Ethereum, an ever increasing number of investors are getting pulled in by the discussion of the gigantic returns given by these digital currencies.
While there are fears that the froth working around cryptocurrency costs could hurt those placing money in a rush of the pattern reverses, there are concerns on how cryptocurrencies will affect gold? Is it possible that gold investors could move over to investing into digital currencies in this way putting weight on the yellow metal?
Product specialists feel that gold will turn out unscathed from the digital money trend and may in actuality gain if the tide gets some distance from crypto.
“It must be believed that gold has been vigorously influenced by the gaining digital currency world. The expanded acceptability of cryptocurrencies as a secure place is a risk to gold costs. The primary concern over the gold market is, what if the central banks allow to invest into cryptocurrencies that likely replace gold. In any case, there is no proof of mass movement from gold to any cryptocurrency,” Hareesh V, Head – Commodities Research at Geojit Financial Services said.
Hareesh feels that once the rising digital currency tide subsides, gold might gain. “The increased acceptability of digital currencies as a safe haven is a threat to gold prices. However, if the present bullishness in Cryptocurrencies turns to bearish, gold would be the top gainer,” Hareesh said. Hareesh feels that once the rising cryptocurrency tide dies down, gold may gain.
Gold has given tepid returns to investors in the year 2017. In the worldwide spot market, gold had begun the year at $1158.8 per ounce and was trading the $1250 territory toward the end of the year, a return of around 9%.