For years, the financial community has debated the best and safest investments during uncertain times. For most conservative traders and investors, bonds are an obvious choice. But for the youth and tech-savvy individuals, Bitcoin is a better option. Despite fiscal challenges and current global economic trends, gold remains the top pick for Bank of America analysts.
According to Bank of America, gold remains solidRegardless of falling or even higher interest rates. Interestingly, the bank is silent on the role of Bitcoin in the financial markets. However, several major US banks are starting to get friendlier, with Bank of America Merrill Lynch and Wells Fargo offering Bitcoin ETFs to their eligible clients.
🚨 Wow: Bank of America today: Gold is ‘safe haven of last resort’ as Treasuries face exposure to USA debt.
They are advising central banks and traders to increase risk appetite#Sleep #silver #silversqueeze pic.twitter.com/XIp7aAYYrx– Make Gold Great Again (@MakeGoldGreat) 17 October 2024
Bank of America: Gold is a better hedge against inflation
Bank of America Analysts say that gold remains a major option in the current economic scenario. Although the bank includes Bitcoin and blockchain in the conversation, it remains cautious. The bank says gold is a logical choice for investors and central banks, while gold is a better hedge against inflation and highly volatile currencies.
Besides, gold is also seen as a better investment. Bitcoin As many expect crypto to potentially decline, especially due to the reported US PPI inflation of 1.8%, which is higher than the expected 1.6%. An increase in PPI means that inflation will put pressure on the economy, which in turn could prompt the Federal Reserve to raise interest rates. Since there are still economic uncertainties, gold has become a reliable investment.
Gold seems to reach the level of $ 3,000
Bank of America estimates that gold prices The level of $3,000 can be reached. This prediction is supported by the planned policies of the two US presidential candidates, Donald Trump and Kamala Harris. Both candidates support fiscal expansion, which leads to increased spending.
The bank estimates that spending could grow 7 to 8% annually through 2030 due to candidates’ pledges to support defense, climate and demographic policies. And if the market continues to absorb more debt, increased market volatility could push more investors into gold.
Image: Deutsche Digital Assets
Many central banks are also diversifying and increasing their reserves. Reserves have increased from 3% to 10% over the past decade, and demand from Western investors has increased recently. In short, Bank of America views gold as a superior long-term safe investment.
BofA remains cautious on blockchain and bitcoin
Like many financial institutions, Bank of America is slowly embracing the potential of blockchain. Bitcoin is being recognized as another alternative to gold Protection against inflation. The decentralization and limited supply of blockchain also makes it an ideal investment medium.
Now that the popularity of Bitcoin and altcoins is increasing, it is only a matter of time that top banks like Bank of America will include them in their investment strategies.
Image displayed from Cryptotab browser, chart from Trading View
