For years, the financial community has debated on the very best and safest investment during uncertain times. For many conservative traders and investors, bonds are an obvious alternative. But for the younger set and tech-savvy individuals, Bitcoin is a greater option. Despite fiscal challenges and current global economic trends, gold stays the very best bet for analysts at Bank of America.
In keeping with Bank of America, gold stays solid, no matter falling and even higher rates of interest. Interestingly, the bank is silent on Bitcoin’s role within the financial markets. Nonetheless, many leading American banks are beginning to get friendly, with Bank of America’s Merrill Lynch and Wells Fargo offering Bitcoin ETFs to their eligible clients.
🚨 WOW: Bank of America today: Gold is the ‘last refuge’ as treasuries face RISKS with USA debt.
They’re recommending central banks & traders increase exposure 🍿#Gold #Silver #SilverSqueeze pic.twitter.com/XIp7aAYYrx— Make Gold Great Again (@MakeGoldGreat) October 17, 2024
Bank Of America: Gold A Higher Hedge Against Inflation
Bank of America analysts say gold stays a main alternative in the present economic landscape. While the bank includes Bitcoin and the blockchain in conversations, it stays cautious. The bank adds that gold is a logical alternative for investors and central banks, while gold is a greater hedge against inflation and highly volatile currencies.
Also, gold is seen as a greater investment than Bitcoin since many expect crypto to potentially fall, especially attributable to the reported US PPI inflation of 1.8%, which is up from the expected 1.6%. A rise in PPI signifies that inflation will put pressure on the economy, which in turn may motivate the Federal Reserve to extend rates of interest. Since there are still economic uncertainties, gold has turn into a reliable investment.
Gold Seen To Hit $3,000 Level
Bank of America estimates that gold prices can reach the $3,000 level. This prediction is backed by the planned policies of the 2 US presidential candidates, Donald Trump and Kamala Harris. Each candidates support fiscal expansion, thus boosting spending.
The bank estimates that spending can grow 7 to eight% annually by 2030 attributable to the candidates’ pledges to support defense, climate, and demographic policies. And if the market continues to assume more debt, an increased market volatility can push more investors into gold.
Image: Deutsche Digital Assets
Many central banks are also diversifying and boosting their reserves. Reserves have increased from 3% to 10% over the last decade, and demand from Western investors has risen recently. In brief, the Bank of America sees gold as a greater long-term secure investment.
BoFA Stays Cautious On Blockchain & Bitcoin
Like many financial institutions, Bank of America is slowly embracing blockchain’s potential. Bitcoin is being recognized as one other alternative to gold as a hedge against inflation. Blockchain’s decentralization and capped supply also make it an excellent investment vehicle.
Now that Bitcoin and altcoins are growing in popularity, it’s only a matter of time before top banks like Bank of America include them of their investment strategies.
Featured image from CryptoTab Browser, chart from TradingView