If there is one thing the majority of global traders will agree upon, it is that the gold price is booming once again. Unlike what most experts assumed, though, the Brexit voting saw the UK leave the EU. Gold and other precious metals become hot commodities once again, and Bitcoin continues to do well across all markets.
Looking back over the gold price throughout the past few days, the gains are evident for everyone to see. Right before the Brexit vote, the price per ounce of gold declined drastically. A low was reached on June 23rd, settling for US$1,256.71 USD per troy ounce of gold. However, regardless of the Brexit voting outcome, experts indicated this price would go up shortly after.
Gold Price Rises Due To Brexit Result
As it turns out, the experts were right for a change. Or to be more precise, they are partially correct. Hardly anyone expected the UK to leave the EU, but that seems to be the case, pending any political mind games that are playing as we speak. But the experts got the important part right: the gold price increased in value.
To be more precise the price per ounce of gold increased in a spectacular fashion. On June 24th, a new price peak was set at US$1,336.66, which is an overnight increase by nearly US$80. Ever since, however, there has been some volatility in the market, pushing the price down to US$1,307.12 earlier today. Still, there is quite a lot of room for future price movement, to say the least.
The Vaultoro platform provides traders all over the world with easy access to gold and Bitcoin trading. In this day and age of portfolio diversification, both of these assets are worth keeping an eye on. The Bitcoin price has proven to be quite resilient so far and is not showing signs of weakness.
Going Back To The Gold Standard
For investors, it is important to bet on a winning horse. Short-term and long-term gains can be made in both the Bitcoin and gold markets. Scarcity is always an important factor in this regard, and both assets bring scarcity to the table. Keeping in mind how more and more people are pleading to return to the gold standard, interesting things are bound to happen.
In fact, Alan Greenspan seems to be for embracing the gold standard again. He told Bloomberg Surveillance:
“We are running out of people. In other words, everyone is very pleased at the fact that the employment rate is rising. Well, statistics tell us that we need more and more people to produce less and less. That is not a prescription for a viable political system. And so what we have at this stage is stagnation. I don’t think that there is anything out there which suggests that there is a recession, but I don’t know that. What I do know is that the money supply, and too, which has always been a critical indicator of inflation, is for the first time going up remarkably steadily 6 percent, 7 percent, almost a straight line. It’s tilted up in the last several months. It’s added a percentage point or two. The thing that we should be worrying about now, which we have actually given no thought to whatsoever, is that this type of economic environment ends with inflation. Historically, fiat money has always ended up that way.”
How this situation will turn out, in the end, is everybody’s guess. Preparing for the worst possible scenario may not be a bad idea at this time. Both gold and Bitcoin can be used to hedge against severe financial repercussions. Vaultoro offers the chance to get involved in both with no friction, and also provides complete transparency. It doesn’t take a degree in rocket science to figure out where to go from here.
Header image courtesy of Shutterstock