Goldman Sachs Analyst Says Crypto Is an Alternative to Copper, Not Gold

Jeff Currie, Goldman Sachs’ head of commodities research, said Tuesday cryptocurrencies are not a substitute for gold when looking for an inflation hedge, but for copper.

Speaking on CNBC’s "Squawk Box Europe", Currie said both gold and crypto have been deemed as hedges against rising prices.
He noted that while gold is viewed as a haven asset, both bitcoin and copper behave as “risk-on” assets.
"Digital currencies are not substitutes for gold," Currie said in the interview. "If anything, they would be a substitute for copper. They are pro-risk, risk-on assets. They are substitutes for risk-on inflation hedges, not risk-off inflation hedges."
Since April gold has risen by almost $200 due to the weak U.S. dollar. Bitcoin has increased more than 25% in 2021, but is down more than 25% over the past three months, CNBC said on its website.
“You look at the correlation between bitcoin and copper, or a measure of risk appetite and bitcoin, and we’ve got 10 years of trading history on bitcoin, it is definitely a risk-on asset,” Currie said.

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Tanzeel Akhtar

Tanzeel Akhtar is a reporter based in London,UK.

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