With Russia officially attacking Ukraine, CEO of US Global Investors Frank Holmesbelieves that gold is the best asset to invest in a high-voltage environment.
Speaking to Kitco News, Holmes noted that gold has historical support as a safe haven asset during times of war and political tension. He noted that the market should not see gold’s poor 2021 performance as a reason to avoid the asset.
Holmes, bitcoinHe added that despite emerging as a critical alternative, the asset has yet to prove itself, considering it is still a young asset class. However, Holmes believes that once Bitcoin passes a few hurdles such as regulations, it will replace gold as a safe haven.
The manager stated that gold is undervalued given the current high inflation environment and the possible increase in interest rates. He believes the precious metal should trade around $4,000. However, 2,500 to 3,000 predicts a target price of between $.
Holmes also hinted that Bitcoin and crypto markets may not be bullish like gold. He thinks regulatory clarity remains the main issue affecting Bitcoin, especially with the G7 countries taking the lead in defining how digital assets will be handled.
Interestingly, Holmes stated in his previous interview that gold will rise in 2022, but Bitcoin will likely outperform the millennial-driven precious metal.
Gold products attract attention
Before Russia invaded Ukraine, gold-related investment products were attracting the attention of investors. gold backed stablecoin‘s gained momentum, outperforming the overall growth of the cryptocurrency market.
At the same time, the spot price of the precious metal also rose 4.67% in a week, reaching an eight-month high of around $1,900.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.