Cryptocurrencies can be a good alternative to copper – not gold – when it comes to investor protection against fluctuating inflation, explained Jeff Currie, head of commodity market analysis and research at Goldman Sachs.
Copper rose to record highs in mid-May, before suffering a sharp decline at the end of the month, and rebounded again last week.
“There is good inflation and bad inflation. The former occurs as demand increases and this is where copper, Bitcoin and oil become good investments,” Currie said. “Gold, on the other hand, considered a risk-off asset covers bad inflation, where supply is being reduced,” he added.
Gold prices have risen more than €140 since the beginning of April being at €1552.12 per ounce roughly today.
On the other hand, cryptocurrencies are on a real roller coaster. Bitcoin, the most quoted digital currency on the market, for example, is up more than 25% in 2021, but has suffered a 36% drop in May alone.
