For years, the financial community has been debating the best and safest investments in uncertain times. For most conservative traders and investors, bonds are the obvious choice. But for younger and tech-savvy people, Bitcoin is a better option. Despite fiscal challenges and current global economic trends, gold remains the best choice for Bank of America analysts.
According to Bank of America, gold remains solidregardless of falling or even higher interest rates. Interestingly, the bank is still about Bitcoin’s role in financial markets. However, many leading US banks are becoming warm, with Bank of America’s Merrill Lynch and Wells Fargo offering Bitcoin ETFs to their eligible customers.
🚨 WOW: Bank of America Today: Gold Is ‘Last Protected Haven’ as Treasuries Face US Debt RISK.
They recommend central banks and investors to boost their exposure 🍿#Gold #Silver #SilverSqueeze pic.twitter.com/XIp7aAYYrx— Make gold great again (@MakeGoldGreat) October 17, 2024
Bank Of America: Gold is a better hedge against inflation
Bank of America Analysts say gold remains the top choice in the current economic landscape. Although the bank includes Bitcoin and blockchain in talks, it remains cautious. The bank adds that gold is a logical choice for investors and central banks, while gold is a better hedge against inflation and high currency volatility.
Moreover, gold is seen as a better investment than gold Bitcoin as many expect a potential decline in cryptocurrencies, especially with US PPI inflation reported at 1.8%, up from the expected 1.6%. An boost in PPI means that inflation will put pressure on the economy, which in turn could motivate the Federal Reserve to boost interest rates. As economic uncertainty continues to exist, gold has emerged as a reliable investment.
Gold has reached the level of $3,000
That’s what Bank of America estimates gold prices can reach the level of $3,000. These predictions are confirmed by the planned policies of two US presidential candidates, Donald Trump and Kamala Harris. Both candidates support fiscal expansion, thereby increasing spending.
The bank estimates that by 2030, spending may grow by 7 to 8% annually due to candidates’ declarations regarding support for defense, climate and demographic policies. And if the market continues to take on more debt, increased market volatility could push more investors to invest in gold.
Image: Deutsche Digital Assets
Many central banks are also diversifying and increasing their reserves. Over the course of a decade, reserves have increased from 3% to 10%, and demand from Western investors has recently increased. In tiny, Bank of America sees gold as a better long-term, sheltered investment.
BoFA remains cautious on Blockchain and Bitcoin
Like many financial institutions, Bank of America is slowly leveraging the potential of blockchain. Bitcoin is considered as another alternative to gold inflation protection. Blockchain’s decentralization and circumscribed supply also make it an ideal investment tool.
Now that Bitcoin and altcoins are growing in popularity, it is only a matter of time before leading banks like Bank of America include them in their investment strategies.
Featured image from CryptoTab browser, chart from TradingView
