U.Today – Peter Schiff has declared Friday the 13th a “lucky” day for gold investors, as the precious metal hit a fresh record high of $2,600. According to Schiff, BTC investors are “out of luck,” just like all Americans in general, the banker and financial expert says.
He said record-high gold prices aren’t just a reflection of market trends. They signal something more troubling, like higher inflation, unemployment, rising long-term interest rates, and maybe even a recession on the horizon.
While many are eagerly awaiting the Federal Reserve’s interest rate cut next week, which some believe should spur an ongoing rally in gold prices, history has shown that gold often does well during periods of flux in the monetary economy.
For example, in September 2007, the Federal Reserve cut interest rates for the first time in four years, after holding them steady at 5.25%. This led to a 45 percent escalate in gold prices over the next six months.
Bitcoin and Gold from 2024
Now, with the Federal Reserve expected to cut interest rates yet again, perhaps not immediately, it’s the anticipation of such a move that tends to drive gold prices higher. Compare that to July 2019, when the Federal Reserve cut interest rates for the first time in 11 years — gold rose 26.35% over the next year.
Meanwhile, Bitcoin, while seen by some as gold 2.0, has yet to become a protected haven in the eyes of most market participants. While it is still seen as digital gold due to its deflationary nature and scarcity, cryptocurrencies as a whole are considered beta for tech stocks and riskier assets.
This is why NASDAQ performance may be more significant to BTC than the precious metal itself right now, and why neither tech stocks nor digital assets are guaranteed not to fall in a recession.
