Earlier this year Grayscale investments launched a pro-bitcoin campaign telling investors to drop gold. RT host Max Keiser noted it seemingly timed the precious metal’s bottom right.
The campaign, which featured a 39-second commercial showing a man and a woman racing around a financial district while seeing people burdened by the weight of gold they were carrying around, meant to get investors to buy Grayscale’s Bitcoin Trust (GBTC), a fund allowing them to gain exposure to BTC without actually managing the cryptocurrency.
RT host Max Keiser has via the microblogging platform Twitter noted that the campaign “timed almost to the hour Gold’s bottom.” Data from Yahoo Finance does show that since then the price of the precious metal has been on the rise, as investors hedge against economic uncertainty.
Part of the reason for gold’s rise is the escalation of the U.S.-China trade war, which saw the latter devalue of its currency in response to tariffs imposed by the Trump administration, in an attempt to offset their impact. This saw Trump accuse China of manipulating its currency, and gold soon surged as investors feared it would escalate to an all-out conflict.
Other factors including negative interest rates, the looming threat of Brexit, and devaluing fiat currencies throughout the world likely also contributed to the precious metal’s rise. Some analyst claim equities are currently overvalued, which may also be helping out.
Since the #DropGold campaign was launched in May, the price of gold went from around $1,300 $1,540, a rise of little over 18%.
Bitcoin itself saw its price rise over similar factors and has outperformed the precious metal over said period, which saw some claim the flagship cryptocurrency is now being seen as a safe haven.
The cryptocurrency has seen its price rise from a $3,200 low in December of last year to around $10,370 at press time, after falling from a high of over $13,000. Earlier this month gold bug Peter Schiff told bitcoin permabull Tom Lee BTC will never reach $50,000.