Bitcoin Isn't Sapping Demand for Gold, Says Goldman Sachs Exec

A Goldman Sachs executive has said there is "no evidence" that bitcoin's price gains have reduced demand for gold.

AccessTimeIconDec 12, 2017 at 2:00 p.m. UTC
Updated Sep 14, 2021 at 1:55 p.m. UTC

A Goldman Sachs executive has said there is "no evidence" that bitcoin's price gains have reduced demand for gold.

Amid investor concerns over the issue, Jeffrey Currie, global head of commodities research for the financial services giant, told the Financial Times this week that he believes investor pools for the two assets are different. Further, bitcoin's lack of regulation, he alleged, is an obstacle for traditional investors.

Still, bitcoin prices have shown astonishing gains over the past month, particularly in the wake of bitcoin futures trading launched by CBOE Global Markets last Sunday, movements that coincide with the fact gold is witnessing a slump in price.

Currie, however, asserted that gold and bitcoin have different characteristics and that the recent price action is due to the nature of demand for the assets.

He said:

"In our view, bitcoin is attracting more speculative inflows relative to gold."

Saying that gold ETF holdings are at their highest level for over four years, Currie stated there is "no evidence of a mass exodus from gold."

And although the lack of liquidity and high volatility may make bitcoin "interesting," it will not likely be a draw for investors seeking the diversification and hedging benefits of gold, he remarked.

The statements follow those by Goldman Sachs CEO Lloyd Blankfein 10 days ago when he said he believes it's still too early for the bank to consider a bitcoin strategy as it "doesn't feel like a store of value."

In November, the company's CEO, Lloyd Blankfein, indicated that, while he's not "comfortable" with bitcoin, he is open to the cryptocurrency.

Jeffrey Currie image via Goldman Sachs YouTube

G

M

T

Text-to-speech function is limited to 200 characters

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
CFTC Charges South African Bitcoin Club MTI in $1.7B Fraud

MTI’s self-described CEO was recently detained in Brazil on an Interpol warrant, the regulator said.

CoinDesk - Unknown
2
CoinDesk - Unknown
States, Not Congress, Will Lead Crypto Regulation, Says Legal Expert

States could move faster to keep pace with a changing market, said Jarrod Loadholt, a partner at Ice Miller Public Affairs Group.

CoinDesk - Unknown
3
CoinDesk - Unknown
Instant Payments for Crypto Companies? BLINC, or You Will Miss It
CoinDesk - Unknown
4
CoinDesk - Unknown
Crypto Miners Face Margin Calls, Defaults as Debt Comes Due in Bear Market

Private and publicly listed crypto miners owe up to $4 billion in debt used to finance the construction of gargantuan facilities across North America, according to industry participants and data compiled by CoinDesk.

CoinDesk - Unknown