Gold, Copper and Bitcoin were the specialist subjects for debutant Charles Morris, Editor at Atlas Pulse, on the Tip TV Finance Show when he joined Zak Mir and Bill Hubard to discuss his thoughts.
Does Gold have a $300 premium in the price?
Morris outlined that Gold is flat for the year, whilst almost every other commodity has collapsed, which led him to believe that the yellow metal has a 62% premium above other commodities. He added that if gold was a bond, it would have zero coupon, no credit risk, and a long duration. In this light, Morris concluded that if bond yields are up, and inflation expectations are low, it is bad situation for gold and he would be a seller for choice despite the $300 premium in the price.
Copper a global indicator for growth
Morris highlighted that precious metals are not all the same, with gold, silver and copper being different to the likes of Palladium and Platinum. He continued that the Copper price often tells us simply what is happening in the world economy, and is a growth indicator based on the amount of houses being built and China’s development.
Above $300 a green light for Bitcoin?
Morris finished on Bitcoin, where he commented that it is used to having high corrections, and now he believed that £300 is the new line in the sand for Bitcoin. He noted that BTC is an asset, not a currency, but there is a debate over whether the market is real or is pure speculation. Morris concluded that an investor should value Bitcoin like a tech stock, with accurate statistics unavailable to be sure that BTC isn’t a pure speculative market.