Gold and Bitcoin Around All-Time Highs – What’s it Mean - 5 Things to Know - #5 - March 15th, 2024

Gary Brode of Deep Knowledge Investing and Robb Fahrion of Flying V Group discuss the 5 Things to Know in Investing This Week: The Stagflation and Doom Issue

-Gold and Bitcoin at/around all-time highs. We do a better job explaining the implication.

DKI Summary:

Within the last week, both gold and Bitcoin have hit all-time highs. We noted this last week, and got some questions about the topic. Bitcoin has been trading as a proxy for global liquidity and has been a high-beta risk-on asset. That means it tends to go up with the market and with increases in liquidity. Gold has been one of the best risk-off assets for thousands of years. That means when people are worried about their local fiat currency or geopolitical uncertainty, they turn to gold.

DKI Takeaway:

I think we’re seeing two things happening here. Bitcoin is rising partly due to the declining purchasing power of fiat currency, partly due to additional demand related to the new ETFs, and partly in advance of next month’s halving which will further limit flows from mining. Gold is rising partly due to the declining purchasing power of debased fiat, partly due to geopolitical uncertainty, partly due to the desire of much of the world to find an alternative to the dollar, and partly as a response to stock market indexes that are hitting all-time highs on no breadth. Like last year, almost all of this year’s stock market gains have come in only a few stocks. As governments overspend and finance that spending with currency creation, I think both of these assets will see increases in their price in dollars.

Your links:

This week's written version of the 5 Things with graphs: https://deepknowledgeinvesting.com/weekly-points-march-15th-2024/

Deep Knowledge Investing Subscription Page: https://deepknowledgeinvesting.com/we...

Flying V Group: https://www.flyingvgroup.com/

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