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"If you need to hedge your bitcoin position, buy gold"

As the World Gold Council moved to reassure investors that cryptocurrencies could not replace gold, its chairman David Harquail, also the president and CEO of royalty and streaming company Franco-Nevada (CN:FNV), offered further insight to Mining Journal readers.
"If you need to hedge your bitcoin position, buy gold" "If you need to hedge your bitcoin position, buy gold" "If you need to hedge your bitcoin position, buy gold" "If you need to hedge your bitcoin position, buy gold" "If you need to hedge your bitcoin position, buy gold"

Gold retains allure

Staff reporter

The WGC released a report last week saying despite the rise of cryptocurrencies, gold held many characteristics that underpinned its role "as a mainstream financial asset that will likely continue to resonate in today's digital world". 

In an uncanny case of timing, the report was released a day before one of Japan's biggest cryptocurrency exchanges confirmed hackers stole about US$500 million worth of virtual assets.

Harquail told Mining Journal he believed bitcoin was a "risk-on" investment.

"For investors looking to protect their capital, gold is the ultimate ‘risk-off' holding," he said.

"It has low to negative correlations to other investment classes. 

"Gold can improve risk-adjusted returns within a broader portfolio.

"In my view, bit-coin is the ultimate ‘risk-on'.

"If you need to hedge your bitcoin position, buy gold."

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