Many Bitcoin investors are choosing gold over Bitcoin as their primary investment for 2019, according to Van Eck Associates CEO Jan Ven Eck. In comments during a Wednesday appearance on CNBC’s ETF Edge, Van Eck suggested that his observation was based on a survey of 4,000 bitcoin investors.
Van Eck noted that the trend is basically the opposite of what occurred in 2017 and much of 2018, when “Bitcoin pulled a little bit of demand away from gold.” Now, more than one year after Bitcoin’s value reached a record high of nearly $20,000, many of those investors are increasingly interested in gold:
“Interestingly, we just polled 4,000 Bitcoin investors and their number one investment for 2019 is actually gold. So gold lost to Bitcoin and now it's going the other way.”
VanEck also said that shares in his firm’s gold ETFs, the GDX gold miners ETF and GDXJ junior gold miners ETF, have done very well in recent months. Moreover, he noted that those shares have been decoupled from the stock markets. "In the majority of the days in Q4 when the S&P was down, GDX was up,” He said.” So that zigzag, that decoupling makes me really excited about gold shares as a diversifier."
Meanwhile, Seymour Asset Management founder and chief investment officer Tim Seymour suggested that Bitcoin may struggle to reclaim attention from gold. In his Wednesday appearance on ETF Edge, he said:
"Not only have we lost all liquidity on the underlying [commodity] but truly outside of the existential blockchain argument, it's been very difficult to argue store of value which is really what we started hearing about. Gold is a store of value and there's no disputing that."