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CEO of investment management firm Vaneck has predicted a bull cycle for gold and bitcoin. “We are at the very beginning of what could be a multi-year cycle in gold, and I also put bitcoin in that category as well,” the executive said, adding that the Federal Reserve is “close to the end of their tightening.”
Jan van Eck, CEO of investment management firm Vaneck, shared his prediction about 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 seen as an investment or a temporary trade that could yield additional profits, he replied:
We are at the very beginning of what could be a multi-year cycle in gold, and I put bitcoin in that category as well.
“Finally, as a gold investor, you have been rewarded over the past couple of weeks. Weakness in the banking system and gold increased. That is why you own gold,” continued the director.
The Vaneck chief further explained that “it could be a two-year cycle” because he believes that “the Fed is close to the end of tightening.” The executive added: “The market is now concerned about the ramifications and it may take a year or more for these ramifications to ripple through the commercial real estate market, banking and lending dynamics, [and] maybe we have a shallow recession.” He elaborated:
At some point the Fed is going to start easing, and that’s when gold will really take hold.
Discussing gold and bitcoin, the Vaneck leader opined:
I think all the speculation is out of both of these markets.
Van Eck pointed out that bitcoin is up nearly 70% this year, outperforming all other assets, and has rewarded “the people who own bitcoin for that thesis of having a hedge in their portfolio.”
Last month, Pantera Capital said that we are already in the next bull market cycle for bitcoin. Last week, the Federal Reserve raised interest rates by 25 basis points. Some expect the Fed to cut interest rates soon, including billionaire Jeffrey Gundlach. However, Fed Chair Jerome Powell stated that interest rate cuts are not in the Fed’s base case. Economist Peter Schiff said the Fed has already gone back to quantitative easing whether they admit it or not.
Do you agree with Jan van Eck? Let us know in the comments section below.
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