Crypto Can’t Beat Gold as an Inflation Hedge, Says Barrick Boss – News Couple

Crypto Can’t Beat Gold as an Inflation Hedge, Says Barrick Boss

(Bloomberg) –

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The world’s second largest gold miner is confident that prices will continue this year, if not rise, as investors use the metal instead of cryptocurrencies to hedge against inflation and demand for jewelry.

“The risk is on the upside,” Mark Bristow, chief executive of Barrick Gold Corporation, said in an interview in Riyadh, Saudi Arabia. “I don’t think there is much risk to the downside.”

He said the most likely scenario is for gold to trade between $1,750 and just above $1,800 an ounce. Spot bullion gained 0.4% to $1,809 by 8:45 am in London, trimming its loss this year to 1.1%.

Bristow, the geologist who has led Barrick’s company since early 2019, is more bullish than analysts, with many predicting a drop in gold as the US Federal Reserve raises interest rates this year. It will average $1,683 an ounce in the fourth quarter, according to a Bloomberg survey of analysts and economists.

Gold’s status as a store of value has been affected by the acceleration of inflation since the outbreak of the coronavirus pandemic. The metal fell 3.6 percent in 2021 even as inflation rose across the developed world and as governments and central banks kept fiscal and monetary policies loose to stimulate their economies.

Bullion is facing increasing competition from Bitcoin and other cryptocurrencies that are increasingly being offered to investors as contemporary gold and an effective hedge against inflation. Goldman Sachs Group Inc. argued. Bitcoin is taking market share from gold as a store of value investment.

“Look at gold and its precious nature – you can’t print it, you can’t make it,” Bristow said. You can make cryptocurrencies, and there are a lot of them. When you are in a dynamic phase like we are now and in the uncertainty of the world, it is always good for gold.”

Bristow is in Riyadh for the first major mining conference in Saudi Arabia. The Toronto-based company is prospecting for copper in western Saudi Arabia in a joint venture with state mining company Ma’aden.

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