Bitcoin horizon opportunities may be set as gold faces some regulatory difficulties.
Crispin Odi, head of Odey Asset Management, wrote in a letter to investors that central banks could make private gold holdings illegal if they lose control of inflation.
The hedge fund manager says governments will use the precious metal to stabilize currencies.
” History is full of examples where those in power, in times of crisis, lead to currency devaluation. “- writes Oddi, recalling the decision of the Federal Reserve to ban the possession of gold in the 30s of last century. This policy allowed the government to buy gold from the public to stabilize the value of the dollar.
Audie warned that inflation could reach levels between 5% and 15% in the next 15 months. He added that rising inflation could be a major obstacle to long-term bonds and the stock market. With the spread of the virus, we can see another series of economic incentives.
In the last three months, investors have been turning to all sorts of safe haven assets to protect their wallets. Oddi’s flagship fund also distributed more gold in April, with the precious metal currently accounting for about 39.9% of the fund.
Crispin Oddie and Paul Tudor Jones provides high inflation and outline Bitcoin and gold as winners in this crisis.