Aside from Frank Holmes, it appears that many investors also consider gold as a better and safer store of value during uncertain times as reports revealed that the price of gold has increased above 2% in a few hours after Russia launched an attack on Ukraine.
Although cryptocurrencies are increasingly considered as a proxy hedge to fiat-induced economic adversities, as they continue to gain massive traction in the global space, Frank Holmes, the CEO of US Global Investors still believes that gold is a better asset to hold when compared to Bitcoin in a high tensioned atmosphere and amid war news, a Thursday report from Finbold reveals.
Speaking on the ongoing Russian forces’ invasion on Ukraine, the prominent investor made assertions that acquiring Gold during a period of war is a better decision to hold Bitcoin considering the historical support gold possesses as being a safe haven asset during periods of political tensions, crisis and war.
Per the report, Frank Holmes made no controversial points on Bitcoin coming up as a censorious alternative. Regardless, he considers Bitcoin as a young asset class, as he noted that the digital currency is yet to prove itself until it is able to beat several hurdles like gaining global regulatory clarity, then it would outsmart gold as the go-to safe haven.
Holmes stated:
“When you look at gold, its breadth and depth of historical significance as a wonderful asset is really showing up when you have war. Bitcoin is a new phenomenon. <…> Historically, it’s been gold, and I would stick with that. Once we get more regulations that come into the crypto ecosystem, then Bitcoin will take on as another next leg of interest globally.”
Frank Holmes strongly believes that the main challenge that is facing bitcoin and has caused limitations to it when compared with gold is regulatory issues, which has made acquiring bitcoin during a high tension period a decision with unfavorable potentials.
Gold Prices Spike Above 2% amid Russian War
Aside from Frank Holmes, it appears that many investors also consider gold as a better and safer store of value during uncertain times as reports revealed that the price of gold has increased above 2% in a few hours after Russia launched an attack on Ukraine.
It appears that investors are incredibly turning to safe havens as the price of gold have reportedly reached its highest in more than a year. Further analysis also revealed that the price of gold has risen about 8% in February since media companies began to air headlines on developments in the Russia-Ukraine crisis. This has triggered many to start taking necessary cautions against potential economical risks.
next