(Kitco News) Gold hit a major milestone this week, finally breaking above the key resistance of $1,750. This could be huge for the precious metal, as many see the possibility of gold taking off from here.
And while we wait to see what happens, the real price of gold might already be much higher than the current spot levels. Here’s a look at our top three stories from this week.
3. The real price of gold is already at $2,100, says former U.S. Mint director Ed Moy. He explained that the true price of gold is what people are willing to pay for the physical metal, including the extraordinary premiums investors are faced with.
Ed Moy explained: “What you do is add $300 or $350 on top of the spot price. And you end up with gold currently at around $2,100, which is the August record high.”
2. Coinbase goes public. The gold versus bitcoin debate is heating up as the largest U.S. crypto exchange had its IPO this week. And bitcoin responded by hitting a new record high of nearly $65,000.
Crypto and gold experts said that this gives more legitimacy for bitcoin, which is already being considered as part of mainstream finance.
1. Grayscale is about to surpass the world’s largest commodity ETF known as the GLD. Grayscale just topped $50 billion in assets under management, which puts it right behind the largest commodity ETF SPDR Gold Trust (NYSE: GLD), which has just over $57 billion.
This is a warning sign for the gold market, which has been seeing a lack of interest from investors as bitcoin continues to surge in popularity.
But industry experts advise not to pit gold against bitcoin, stating that it is not one or the other. The consensus from this week was that both assets are hedges against irresponsible money printing. And both will be winners if runaway inflation is around the corner.