Goldman Says Bitcoin’s Surging Popularity Won’t Harm Gold
- Digital currency not existential threat for bullion, bank says
- Two assets can coexist, although there’s ‘some substitution’
This article is for subscribers only.
Gold and Bitcoin can coexist, according to Goldman Sachs Group Inc., which said, while the largest digital currency may be pinching some demand from the oldest of havens, the precious metal’s standing will endure.
“Gold’s recent underperformance versus real rates and the dollar has left some investors concerned that Bitcoin is replacing gold as the inflation hedge of choice,” the bank said in a note. While there’s been some substitution, “we do not see Bitcoin’s rising popularity as an existential threat to gold’s status as the currency of last resort.”