Ex-director of the United States Mint says he sees gold hitting new highs and also talks Bitcoin
(Kitco News) - In an interview with S&P Global Ed Moy who is now the chief investment strategist at Valaurum said "Obviously, short term, there's a lot of factors that are causing some push and pull, which has kept gold trading within a very tight range. But from my perspective, I think the fundamentals for rising gold prices are very strong over the next year. I expect gold prices to eventually break out and head to new records sometime in the next year or two.".
When talking about the reaction to the COVID-19 pandameic Moy said "The same things were happening when COVID-19 first started breaking out. Lockdowns started coming into place, people panicked, they went into gold. Gold actually shot up to a new high, and the government ... [is] basically throwing more at it than what happened during the financial crisis. Plus, with the vaccine, people started relaxing.".
Moy then predicts higher prices stating "Eventually, you're going to see that be a catalyst for rising gold prices. I think that until it becomes certain how the economy will recover and that the recovery will be slow enough to manage inflation, gold prices are going to go up. Once those two criteria are hit, then gold prices will go down, and I won't be surprised if we hit new highs."
The interview didn't stop with just gold. Moy has a very pragmatic approach to cryptocurrencies too adding "When you take a look at the overall similarities, both are limited quantities. Bitcoin is limited to 21 million that could possibly be mined. People have tried to recreate gold in a laboratory; they have not been able to. So the amount of gold that's in the earth is all that will ever be. Their prices have an inverse correlation to the value of the dollar. So when the dollar goes down, both bitcoin and gold tend to go up. But there are some differences, and I think they are important differences. One of them is that gold's been around for 5,000 years. Bitcoin has been around for 10 years. The longevity of bitcoin has yet to be proven.".