Gold, ya know, it’s had a bit of a chill-out sesh after a whole year of going cray-cray and spiking up 35%. But hey, even with stocks making a comeback, our market hedge friend gold still has some room to climb, according to David Schassler, the big shot head honcho of multi-asset solutions at the fund manager Van Eck. “I couldn’t imagine a better scene for gold,” Schassler spilled on CNBC’s “ETF Edge” this week. The U.S. government is swimmin’ in “huge debt, huge spending, and huge chaos,” according to Schassler, who doesn’t think that’s gonna change anytime soon.
Hedge fund guru, David Einhorn from Greenlight Capital, was nodding his head in agreement on CNBC’s “Closing Bell” this past Wednesday at the Sohn Investment Conference. “There’s a mutual understanding to basically do nothing about the deficit until we hit the next crisis,” he said. Einhorn is ride-or-die for gold and predicts it could hit $5,000 by 2026. Schassler is also throwin’ his hat in the ring, calling for gold to hit $5,000 next year.
Now, onto the new kid on the block, crypto. Schassler is all about the market’s fresh hedge, seeing gold and crypto moving in sync. “Bitcoin is like the wild child of gold,” he said. While it can be a rollercoaster of emotions and sometimes dances to the beat of a different drum from stocks, bitcoin has seen a 60% jump in the last year. Unlike gold’s recent dip, bitcoin is up 10% in the last month. So, what’s the deal with these new tools from the ETF world that investors might wanna check out to get a piece of the bitcoin action while keeping risk in check? Todd Rosenbluth, the head of research over at VettaFi, is all about the options-based ETFs. “I’m lowkey vibing with what’s happening in the options-based world with ETFs,” he said on this week’s “ETF Edge.”
There’s this ETF called the Calamos Bitcoin 80 Series Structured Alt Protection ETF (CBTJ) that Rosenbluth thinks investors should peep. It’s got a cap on the upside, but if the assets take a nosedive of more than 20%, that’s where the party stops for investors in terms of losses. So, it seems like there’s some interesting stuff brewing in the world of gold, stocks, and crypto. Will gold hit $5,000 next year? Is bitcoin really the wild cousin of gold? We’ll just have to sit back, relax, and see how this all unfolds.
