by Nino Sunseri
Economic and financial journalist for over 50 years, he started in 1974 at the Giornale di Sicilia. He worked in the roles of news manager and correspondent for Corriere della Sera, La Repubblica and Libero.
Price at highs
Gold and Bitcoin are at highs. The yellow metal shares around at 2,286 dollars per ounce, a new historical record, +9% in the quarter. Stellar performance for the cryptocurrency in the first quarter: +65%. The oldest investment that walks hand in hand with the asset class born on the web and for the web. A past that is lost in the most remote antiquity and the future made of pure chance that intersect on the trading circuits. In both cases we are talking about uses to protect against fluctuations in traditional currencies. In fact, banknotes can be printed continuously while the supply of gold and bitcoin is limited. In both cases the rarity factor contributes to keeping prices high. With one substantial difference: gold is a store of value given the narrow range of price fluctuations. Bitcoin, on the other hand, is a pure bet. But there’s more: the choice between yellow metal and crypto also marks a difference between West and East. A fault line which, after having been geographical and political, also becomes the confrontation between a world that loves the unsurpassed concreteness of an ingot and Wall Street which focuses on the inconsistency (and high risk) of a currency that circulates only on web
Gold purchases in China
And it’s true. The People’s Bank of China (PBOC) was a very active buyer last year. It alone covered almost a quarter of all central bank purchases, after increasing the own reserves of physical gold of 225 tonnes to 2,235 tonnes at the end of the year. The reason is very simple: after what happened with Russia, the Beijing authorities decided to take action. They have strengthened the reserves to be used if necessary as a means of payment on international markets: could the confrontation with the USA ever take the path of sanctions. Moscow saved itself with gas. And Beijing? Better to prepare by strengthening reserves. Added to these is the demand from private individuals. According to data from China’s General Administration of Customs, gold imports for non-monetary use increased to 1,447 tonnes last year, surpassing the previous record of 1,427 tonnes in 2018.
The new frontier
The situation is completely different for Bitcoin and it represents the new frontier (not without risks) for Wall Street finance. However, anyone who deludes themselves that the crypto world has finally assumed the minimum connotations of “credibility” required by a financial market must still think deeply. Bloomberg reported news that a hacker stole $63 million in crypto assets from a blockchain-based game. The game, Munchables, confirmed the incident in a post on X on Wednesday and said it would try to stop the transactions. Blockchain specialists PeckShield indicated that the hacker stole 17,400 Ether tokens, worth around $63 million at current prices. Public data on crypto transactions confirmed the estimate. In recent weeks, the collection of spot ETFs newly listed on Wall Street has become the critical factor par excellence, together with the halving which blocks the offer. Latest data from digital asset manager CoinShares showed that capital flows have slowed, while outflows supported by the Grayscale Bitcoin Trust ETF have put some selling pressure on the token. For this reason, specialists invite you to take advantage of the gaps in the range between the previous historical record of 2021 in the 69 thousand USD area and the most recent one at 74 thousand USD to take profits from a trading perspective.
This article has been prepared for informational purposes only and does not constitute consultancy or solicitation to buy or sell financial instruments. The information reported is in the public domain, but may be subject to change at any time after publication. We therefore decline any responsibility and remember that any financial transaction is carried out at your own risk.