Komal Joshi · Oct 21, 2020 . 6min read
Peter Schiff identifies silver as the fastest horse in the race
Tudor Jones Corp. made a bet that Bitcoin is the best inflationary hedge. Peter Schiff believes that silver is superior. We analyse gold, bitcoin and silver
By Shilika · Jul 22, 2020 . 6min read
Earlier in the year, it had emerged that Tudor Investment Corp had purchased an unspecified amount of Bitcoin. The firm holds a combination of Bitcoin and Bitcoin futures. Paul Schiff, CEO of Euro Pacific Capital, thinks that Tudor Jones is betting on the wrong horse. He believes silver is where the action is.
Paul Tudor Jones commented on his Bitcoin holdings as ‘owning the fastest horse’. The main reason for his firm’s decision to get involved in Bitcoin has to do with the impending inflation brought about by stimulus injections by central banks into the economy. Tudor Jones stated that Bitcoin today reminded him of gold in the 70s.
Schiff believes that Tudor Jones’ holdings in Bitcoin are the wrong bet. He sees gold and silver as a much more profitable alternative. He might have a point. Bitcoin’s price this year has remained uncharacteristically stable. Many investors have looked into Bitcoin and gold to store their wealth because of the current state of the world’s economy. Traditionally, Bitcoin is the asset that represents a high reward possibility. However, this year it seems as though gold and silver might present a better case.
Gold today is at the highest price it has been since 2011—silver, since 2014. The prices are going up due to the falling value of the dollar. The dollar is falling due to the stimulus packages introduced by the Fed and the European Central Banks. Investors forecast inflation, and as such are moving their money into gold, silver and crypto as a hedge.
Gold and silver prices are both up by around 26% this year. Bitcoin is up by a little over 30%. While Bitcoin has done slightly better this year, it seems to have flattened out after crossing the $9000 mark. Gold and silver, on the other hand, continue to rise, and investors expect it to keep going.
As far as a hedge against inflation goes, all three assets seem to be a good option. In terms of returns, at the present moment in time, it appears as though gold and silver present better opportunities for investors.
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