Asset Protection: Does Bitcoin Benefit From Gold Supply Bottlenecks?

In the crisis, more than ever, the question is how to protect your assets. Many investors are fleeing physical gold for fear of inflation. What effects the supply shortages of gold have on the Bitcoin price, why some stable coins are affected and why both assets should not be missing in any portfolio, especially in the Corona crisis. After the gold price, like the bitcoin price, had to lose steam during the Corona sell-off, it was able to increase significantly again last week. Gold recorded just under 9 percent plus, demonstrating its qualities as a crisis metal. The corona crisis has made people so unsettled that more and more investors are opting for the supposedly safest form of gold investment: physical storage.

 

Clearance with consequences

So this week, there were lots of pictures of people in line on social media queuing up at well-known gold traders like Degussa to buy bars and coins. This shows how little trust many investors have in financial institutions and their securitization and storage. Despite the economic arguments of not buying physical gold, demand can hardly be met.