The CEO of investment firm Vaneck believes a bull cycle will soon be in the cards for both gold and bitcoin. “We could be at the beginning of a several-year cycle in gold, and I’d also include bitcoin in that,” the executive commented, adding that the Federal Reserve is “close to the conclusion of their tightening.”
Bull Cycles in Store for Gold and Bitcoin
Jan van Eck, CEO of asset management firm Vaneck, revealed his prognosis regarding gold and bitcoin in an interview with CNBC last week. His firm has $69 billion in assets under management.
When asked whether gold, at its current level, should be considered an investment or a potential trade for extra returns, he responded:
We could be at the start of what might be a multi-year cycle in gold, and I’d also include bitcoin in that.
“Ultimately, if you’re a gold investor, you’ve been rewarded in the past couple of weeks. Weakness in the banking system and gold surged. That’s why you own gold,” the executive continued.
The Vaneck CEO further explained that “it could be a two-year cycle” because he believes that “the Fed is close to finishing their tightening.” The executive added: “The market is concerned now about the consequences and it could take a year or more for those effects to roll through the commercial real estate market, the banking and lending dynamics, [and] maybe we have a shallow recession.” He added:
At some point, the Fed is going to begin easing, and that’s when gold is really going to shine.
Talking about gold and bitcoin, the Vaneck executive opined:
I think all the speculation has gone out of both of those markets.
Van Eck indicated that bitcoin has increased almost 70% this year, surpassing all other assets, and has rewarded “the people that own bitcoin for that thesis of wanting a hedge in their portfolio.”
Last month, Pantera Capital said that we’re already in the next bull market cycle for bitcoin. Last week, the Federal Reserve raised interest rates by 25 basis points. Some people expect the Fed to cut rates soon, including billionaire Jeffrey Gundlach. However, Fed Chair Jerome Powell said rate cuts are not in the Fed’s base case. Economist Peter Schiff asserted the Fed has already returned to quantitative easing, whether they admit it or not.
Do you agree with Jan van Eck’s forecast? Share your thoughts in the comments section below.
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