Will Bitcoin Steal Gold’s Luster in 2018?


Dec. 27 2017, Updated 2:32 p.m. ET

Agnico Eagle Mines: Bitcoin could make a stronger case for gold

According to Agnico Eagle Mines’ (AEM) CEO (chief executive officer) Sean Boyd, bitcoin (ARKW) may have taken some demand away from gold in 2017, but it will ultimately work to gold’s advantage. He said, “I actually think you can build a much stronger case for gold in an environment where bitcoin is drawing this kind of investor interest.”

Boyd believes that gold has done very well in an environment when the equity markets are making higher highs every week. He added that the market will turn at some point and that it will pay to be positioned properly in gold (NEM) (EGO).

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Barrick Gold: Bitcoin to reiterate gold’s role

Barrick Gold’s (ABX) CEO Kelvin Dushnisky voiced a similar opinion. While talking to Bloomberg regarding the future outlook for the market and the sector, he mentioned that it would be hard for cryptocurrencies to replace physical gold since gold is finite in supply. He added that a correction in bitcoin would offer a “helpful reminder” of gold’s role as a store of value.

Goldman Sachs: Different demand categories

Goldman Sachs (GS) also believes that bitcoin isn’t taking away the demand for gold. GS’s global head of commodities research, Jeffrey Currie, said that the investor segment for bitcoin and gold are vastly different. He believes that cryptocurrency is attracting more speculative flows than gold. He also doesn’t see bitcoin providing the diversification and hedging benefits that gold provides.


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