Speaking of Bitcoin… as of this writing, crypto currency has taking a beating. There have been many negatives to wash their growth away. Bitcoin has been touted as a “store of value.” Not sure if that is true, as there are now thousands of coins, and they are extremely volatile.
As we spoke of last month, many investors are concerned with inflation. As the chart below may show, Bitcoin has been pulling funds from gold investors for some time. Gold usually spikes when investors are concerned with inflation, but it has not moved, until recently.
Are investors realizing Bitcoin is not a store of value? Are they realizing that gold, while boring, may be the best store of value if you are concerned with inflation? Not sure of the answer yet, but it is a developing story.
Could it be time to initiate a gold hedge? Maybe, but as the chart below shows, stocks perform quite well in a low to rising interest rate world with commodities coming in a strong third.