Gold’s Role as a Strategic Asset
Despite the impressive rise of bitcoin in 2017, its increased price volatility and complex mining process have limited its demand.
The sudden surge in bitcoin and the cryptocurrency market made some market participants worry about the future of gold.
Bitcoin (ARKW) has seen its price plunge since the start of 2018 due to news that world leaders are planning to implement regulations on digital currencies.
Supply is one feature that bitcoin shares with gold. Gold supply is also seen to be diminishing.
According to the World Gold Council, jewelry accounts for about 50% of global gold demand.
Bitcoin’s extremely volatile nature makes it difficult for it to serve as a store of value asset.
When bitcoin showed impressive growth, many believed it could replace gold. But since gold is less volatile, it may be superior to bitcoin.
Economists expect that rising inflation and a tight labor market will lead the Fed to hike interest rates this year.
From the presidential election in November 2016 through August 2017, the energy sector saw its worst time.
The aerospace and defense sector has been one of the most profitable sectors since President Donald Trump took office.