Dollar Auction Show Gold vs Bitcoin vs other stores of value
Jun 15, 2021
Ravi Sood, a mathematician turned financier and co-founder of Galane Gold, dives into the clash of gold and Bitcoin as stores of value. He discusses the inflation risks stemming from recent monetary expansions and argues gold's enduring status despite Bitcoin's rise. Ravi shares insights on gold's limited supply and compares it to Bitcoin's halving design, along with his hands-on Bitcoin mining experience. He emphasizes a balanced portfolio, advocating for both assets in an uncertain economic landscape.
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Unplanned Journey Into Gold
- Ravi describes an accidental path from math/computer science into gold investing after working at a family office and meeting veteran macroeconomists.
- He started Galane Gold in 2010 to become a gold producer and rode a challenging post-2011 downcycle that taught operational discipline.
Gold Moves With Monetary Policy
- Gold's price is driven more by monetary forces than by typical supply-demand production mechanics like base metals.
- Ravi believes post-2008 monetary expansion points gold's direction sharply upward as a hedge against future inflation.
Different Inflation Measures Change Targets
- Inflation measures produce widely different implied gold targets, so price forecasts are moving targets.
- Using broad money growth yields far higher theoretical gold highs than official CPI adjustments.