Anthony Pompliano is analyzing gold vs. Bitcoin as inflation hedge assets. Check out the relevant tweet that he posted on his social media account.
Gold is down 14% over the last 12 months, while CPI and core inflation are at record highs.
The precious metal has completely failed as an inflation hedge asset.
— Pomp 🌪 (@APompliano) August 8, 2021
Someone said: ‘Pomp, being an inflation hedge is only one small reason to own gold. People also own it as a safe haven or store of value, or because it’s beautiful or useful. Only a small minority own it strictly as an inflation hedge. PS. Gold is also a deflation hedge.’
Prices of gold and silver
A commenter posted this: ‘As per usual you fail to actually understand the nuance. A rising gold price is indicative of a failing currency. Currently the price of gold and silver are dictated by the derivative paper contracts so as to maintain public confidence in the dollar. Banks and gov cont to accum.’
Someone else posted this message: ‘Wait until the debt market implodes, stock market crashes, and commodity prices skyrocket. You got tunnel vision, as you’re looking at the short term picture and not ahead. What’s coming won’t be pretty and hard assets is how you edge your bets. They are not trading pieces.’
Someone else said that gold is a monetary error hedge and not an inflation hedge. The same follower explained that the reason for which gold has not been rising is that the market sees deflationary forces and not inflation.
Bitcoin, on the other hand, has already proven to be a store of wealth and a hedge against inflation.
At the moment of writing this article, BTC is trading in the green and the coin is priced at $43,636.68.
Stay tuned for more relevant news.