Gold, silver, bitcoin - protection against inflation?

The price of bitcoin increased yesterday to approx. 67 thousand. hole. JP Morgan analysts are wondering whether the demand for cryptocurrency may be related to inflation. Bitcoin it would be chosen, even at the expense of gold, as a form of protection against the impairment of traditional money. Big bank experts compare the inflows and outflows of capital from funds that give exposure to bitcoin and gold, where the opposite is clearly visible.

Interest is not waning on Wall Street ETFswhich are based on bitcoin quotes. Yesterday ETF fund called BITO exceeded the turnover value of USD 1 billion. More ETFs in the US with exposure to bitcoin have also been announced.

Gold - but not all is lost?

The price of gold rose on Thursday, approaching $ 1800 amid US dollar weakness and sustained inflationary pressures, but rising bond yields remain a major risk to gold. Its price has been rising recently for three days as the dollar weakens, making the gold price lower than other currencies.

In the face of mounting pressure to change financial policy in New Zealand, Australia, Great Britain and the USA, gold has always been considered a hedge against inflation, but any aggressive actions by central banks to curb inflation and raise interest rates will translate into higher opportunity costs, weakening demand for the ore - this is the theory.

Looking at the statements of representatives Federal ReserveWhile tapering may actually start in November, interest rate hikes are not so certain in 2022. There are more and more doubts about this, because the Fed probably remembers that, chasing cost inflation in the 70s, it drove the economy into two recessions - one after the other, which he may want to avoid this time, waiting for inflation to drop by itself.

Silver with a new glow

In addition to gold, investors can also pay attention to the price of silverwhich has risen from around $ 21 at the end of September to almost $ 24,5 today. It seems to be one of the larger and faster upward moves, comparable only to what we saw in March 2021. Gold or silver may not have said the last word yet. Capital may still flow into these markets.