Bloomberg Intelligence’s senior commodity strategist Mike McGlone says investing in gold without holding Bitcoin could leave investors exposed to market risks.
In a new interview with Stansberry Research, McGlone says that in a rapidly digitizing world, the yellow metal is inadequate as a hedge on its own.
“Looking forward in a world going digital, I see Bitcoin is adding competition to gold. But I see Bitcoin should actually be in that same bucket because if you’re holding only gold, I feel it’s a little bit naked without Bitcoin.”
The commodity strategist adds that Bitcoin is the “new version of gold.”
“The key risks for anybody looking forward in gold is I see gold positions somewhat naked if they’re not paired with some Bitcoin. Because Bitcoin is the new version of gold.
And I see that, I sense it. And a lot of the indicators show those flows are going that way. Some of the old guard gold bugs and gold flows have headed towards Bitcoin. It makes sense. I mean, let’s look to the future.”
McGlone further points out that the flagship crypto asset is now enjoying the same levels of volatility as gold was four decades ago.
“So when people say Bitcoin volatility is high yeah sure it’s only been around 10 years. I mean, gold’s been around since the beginning of time. And Bitcoin annual volatility is around 50 right now.
So it’s a longer-term measure which is about the same volatility that gold was trading at in 1980 right when it had that big rally. So, to me when people say [Bitcoin is] volatile, sure it’s breaking out to all-time new highs. It’s got a lot of unique things happening to it. But compared to other assets its (volatility is) the lowest ever.”