September 2021 Newsletter: Gold Prices Steady at $1.8K While Bitcoin and Crypto Markets Soar; New All-Time Highs To Come This Fall?

Home » Blog » September 2021 Newsletter: Gold Prices Steady at $1.8K While Bitcoin and Crypto Markets Soar; New All-Time Highs To Come This Fall?

Yet again, August proved to be another month of strong stability for gold. 

The price of gold opened at $1,813 per troy ounce on August 1st and closed at approximately $1,816 on August 31st. While stocks and riskier assets have wavered up and down like a yo-yo over the past few months, the price of gold has been a bulwark against volatility.

Small wonder why so many investors and institutions have been turning to gold to hedge against systemic risk. 

Silicon Valley billionaire Peter Thiel acquired $50 million in physical gold bars during the month of August. This should come as little surprise given that one of the co-founders of Thiel’s software firm, Palantir Technologies, has publicly stated that “idiots are running the Fed.” Thiel, and much of the Silicon Valley investors who work alongside him, aren’t shy about their misgivings with the Fed’s debt-inducing monetary policies. 

Over the last month, Egyptian billionaire investor Naguib Sawiris also started recommending a portfolio allocation of 30% in gold. Due to inflation risks and precariousness in the stock market, Mr. Sawiris, like Mr. Thiel, has recently moved a significant portion of his wealth into stable, physical gold assets. 

China is also demanding more gold now than it has over the last several years. A recent report found that Chinese gold demand in 2021 is higher than at any point in the previous year and a half. In fact, industrial demand for gold is 4.49% higher than it was in 2019, indicating that gold-intensive operations are surging in the country. 

All the while the cryptocurrency market is on fire. 

For the first time in months, Bitcoin eclipsed the $50K per token mark on August 24 and has since stabilized around that resistance point. In the meantime, Ethereum has been surging ever-closer to all-time high territory. Currently, Ether is trading around $3.8K after opening the month at $2.6K, representing a massive gain of nearly 47% on the month.  

In August, investor Kevin O’Leary of ABC’s Shark Tank fame announced that he will be more than doubling his holdings in crypto from a 3% portfolio allocation to 7%. For a man who was outspoken against Bitcoin as recently as January, O’Leary’s newfound confidence in the digital currency probably isn’t unfounded.  

Whether you’re looking for massive upside potential or a safe store of value before the next financial crisis, alternative assets are a key resource for meeting your investment goals. To get started today, check out our list of the top Bitcoin IRA companies, or learn more about adding gold to your IRA

 

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Mark T.
Mark has worked in the investment industry in Chicago and New York for over 15 years. After graduating from Chicago State University with a degree in Finance, he has occupied various management positions at reputable banks and financial institutions, including: Chase, Bank of America, Wachovia, Sterling Trust and Fidelity. His experience has led him to develop a keen understanding of the current economic landscape. For the past 10 years, Mark has been working as an independent investment advisor and has helped many Americans learn how to protect and grow their savings by properly diversifying their portfolios.
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