Bitcoin, gold, and silver are three popular investment vehicles. The latter two have been around for decades while the former has been here for just one. However, each is a viable form of making money, and investors don’t have a surefire answer.
As you may know, the stock market is at an all-time high. But, when stocks tend to dip, investors move to gold and other, more reliable long-term vehicles. Bitcoin is slowly becoming another avenue, but which is most preferred? According to Jim Iuorio, a long-time options and futures trader, gold is “the best.” Speaking to CNBC on its “Futures Now” show, Iuorio explains his thoughts on the market:
“Since last November — so, for about eight months or so — when the Fed started to move towards dovish, people flocked to gold and to bitcoin and they ran them both up. They forgot silver, but … silver sometimes lags gold and then catches up all at once. We’ve seen that in the last couple weeks.”
The trader then goes into Bitcoin’s volatility. Of course, the asset is known for drastic changes in a short period of time, like its “$3,000 drop in about a minute two weeks ago.” As is the case with many traders, that level of unpredictability isn’t worth the potential profit. “Bitcoin’s out,” says Iuorio.
Conversely, gold has gone up close to 11% in 2019, and silver has done the same but at 9% over the past few months. “Silver’s rallied hard recently. That leaves gold. Yes, the dollar’s rallying. Gold and the dollar have rallied together at the same time before. I like gold the best,” claims Iuorio, who plans on putting even more money into the asset.
Does this make gold the ideal investment? Well, not to everyone. Scott Nations, the President over at NationsShares, believes gold is a “horrible technical setup.” Speaking during the same show as Iuorio, Nations claims that gold “had a key reversal:”
“I’m not the biggest technician in the world, but I pay attention to key reversals. What does that mean? It means that the contract made a new high and finished lower on the day, and that’s horrible. And, since then, gold has been terrible.”
That said, he wouldn’t put his money in Bitcoin as an alternative, either. Instead, Nations prefers silver, and would even “be a buyer of the September contracts [at] $16.45,” he says. The President continues, stating that “silver’s actually remained strong. My target to the upside would be $17.50 and my stop to the downside would be $15.75. A couple of reasons: [The] dollar’s been really strong, and that’s going to impact silver less than gold.”
On top of this, Nations backs his claim stating that silver has more “industrial users” and isn’t as tied to interest rates as gold. Iuorio doesn’t entirely disagree. In fact, the two even come to a mutual conclusion:
“I think if silver shows a little more strength, I like silver, too. I mean, just for the fun of it, I’ll say Scott’s wrong and gold’s way better, but I don’t hate his trade.”
What do you think about the investment opportunity between gold, silver, and Bitcoin? Where do you believe we should bet? Let us know in the comments below!