Dear Friend of GATA and Gold:
The Bloomberg report below says market analysts for JPMorganChase & Co. believe that investment gold will suffer for years from competition with bitcoin and other cryptocurrencies.
Maybe so, but since Wall Street is a snakepit and JPMorganChase & Co. is the king of the snakes, the report brings to mind the old anecdote about the Austrian empire's foreign minister, Prince Klemens von Metternich, who in 1814 was immersed in another snakepit, the Congress of Vienna, which aimed to redraw the borders of Europe. Told that the French ambassador had died, Metternich is said to have responded: "I wonder what his motive was."
What is JPMorgan's motive in touting cryptos and disparaging gold? Is it to enlighten investors or scare them out of monetary metals and into a currency that governments might defeat more easily?
Maybe a hint is provided by the $900 million fine recently imposed on the investment bank for manipulating the monetary metals and Treasury bond futures markets.
With its libertarian inclinations, GATA wishes the best for all attempts to increase competition in money. But investors in cryptocurrencies should know just as investors in gold do that more than pestilence, famine, and war, governments hate competition with their money and that, as a result, all monetary alternatives have their risks.
A fellow subversive libertarian, the comedian Remy Munasifi, demonstrated this brilliantly a few years ago with a hysterical three-minute rap video, "Bitcoin Billionaire," which you can find at YouTube here:
https://www.youtube.com/watch?v=UG7zLhEWanc
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
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JPMorgan Says Gold Will Suffer for Years Because of Bitcoin
By Eddie Spence
Bloomberg News
Wednesday, December 9, 2020
The rise of cryptocurrencies in mainstream finance is coming at the expense of gold, says JPMorgan Chase & Co.
Money has poured into Bitcoin funds and out of gold since October, a trend that's only going to continue in the long run as more institutional investors take a position in cryptocurrencies, according to the bank's quantitative strategists including Nikolaos Panigirtzoglou.
JPMorgan is one of the few Wall Street banks that's predicting a major shift in gold and crypto markets as digital currencies become increasingly popular as an asset class. The trend poses a problem for bulls in precious metals markets over the coming years if investors move, even a small slice, of their allocations away from gold and into crypto.
"The adoption of bitcoin by institutional investors has only begun, while for gold its adoption by institutional investors is very advanced," wrote the JPMorgan strategists. ...
... For the remainder of the report:
https://www.bloomberg.com/news/articles/2020-12-09/jpmorgan-says-gold-wi...
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