GJ Town India

Gold and crypto currencies, WGC report   Recently World Gold Council (WGC) published the report, Gold and crypto currencies: How gold’s role in a portfolio differs from cryptos. The recent rapid ascent of crypto currencies over the past year has captured the attention of investors.   Often, investments in cryptos are equated to investments in gold. Despite some apparent similarities, we believe that gold stands apart from crypto currencies, both fundamentally and practically. Our analysis demonstrates that gold, 1: is a tangible asset with a unique dual nature as an investment and consumer good, 2: is highly liquid and less volatile, 3: is a proven long-term strategic investment & 4: may mitigate the risks that cryptos could bring to portfolios. The report also highlights, gold’s role in a portfolio differs from cryptos. That said, 1: Gold and cryptos are fundamentally different, 2: The advent of blockchain and crypto currencies has catalysed innovation in the financia...

Bitcoin, unlike gold does not provide the liquidity In the recent Investment Update, World Gold Council said: “ In Q4 2018, as global stock markets experienced their worst quarter since 2009, cryptocurrencies had a prime opportunity to demonstrate qualities associated with safe havens like gold. However, cryptocurrencies, such as bitcoin, behaved like risky assets and fell while gold rallied.” Though comparisons have been made, we believe there are several reasons why cryptocurrencies are no substitute for gold. Specifically, gold is less volatile and enjoys a more liquid and established market. It has a well understood role in an investment portfolio and minimal overlap with cryptocurrencies on many sources of demand and supply. As events of late 2018 indicated, the perceived ability of cryptocurrencies to serve as a liquid, safe-haven hedge and store of value in times of market stress did not hold. Bitcoin’s price behaviour resembled a technology stock as it fe...