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(Kitoko News) – The gold market remains below $1,750 an ounce. But one fund manager said the long-term potential of precious metals remains solid.
Charlie Morris, chief investment officer at Bytetree Asset Management, said he expects the gold price to rise to $7,000 by the end of the decade.
Morris’ gold outlook comes as Bytetree continues to promote new gold/bitcoin exchange trading products. The 21Shares Bytetree BOLD ETP was launched as an inflation hedge tracking an index composed of Bitcoin and gold. The fund invests about 80% in gold and about 20% in bitcoin.
Gold is the stronger asset in the dark times, and Bitcoin is the stronger asset in the good times, he said. Something like /40.”
Both gold and bitcoin have struggled in the face of a stronger dollar since the fund launched in April. Looking ahead, however, Morris said there were signs that the US dollar’s massive rise may be coming to an end. said Friday’s hawkish remarks by Federal Reserve Chairman Jerome Powell did not bring new momentum.
“The dollar has been in this horrible uptrend for the last two years and no one is helping. This whole story of dollar strength is very mature and has peaked or is about to That’s when gold finally does. Go back to what it was.”
With the US dollar peaking, Morris sees interest rates nearing a peak. Morris’ outlook comes as the market expects the Fed to raise interest rates by 75 basis points next month. But Morris said central banks are still limited in what they can do.
“Powell’s comments were hawkish, but it’s easy to say harsh things when the economy is still in pretty good shape,” he said. “What will he sound like when the data gets really soft? We can’t hike as much as they say because the economy will be destroyed. So we have to learn to deal with stagflation.” Hmm.”
Morris said investors will find value in gold once they realize that inflation will continue to rise. There is little central banks can do about it. He added that the recovery will be dramatic as so many funds are liquidating their gold holdings.
“Given where interest rates are right now, gold is pretty close to fair value, but a big change will come once people realize how wrong the Fed is about inflation.” It is only a matter of time before it is seen as a valuable financial asset.
Just as Morris is bullish on gold, he sees more potential in silver. He added that silver is currently 30% undervalued.
Silver will start to shine once breakeven starts to accelerate. Gold performs well in a low real interest rate environment, but silver really outperforms when there is inflation, he said.
Regarding cryptocurrencies, Morris said the current downtrend is quite healthy as it distinguishes between strong and weak assets. He added that he sees Bitcoin and Ethereum emerging as two big winners when the dust settles.
Morris said Ethereum’s move from proof-of-work to proof-of-stake would be a game changer in the crypto space.
“I think it’s the new Nasdaq. Yes. It may not be very lucrative, but it’s the project that makes the money. The value is in what’s seen as having production capacity to host the financial system in the future. I will, he said. he said.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of the author Kikko Metals Co., Ltd. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the authors can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation of an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the authors of this article accept no liability for loss and/or damage resulting from the use of this publication.
