Here’s a look at the latest developments in the precious metals market for the week beginning 6/7/21.
- Will gold prices stay high in 2022?
- Bitcoin and cryptocurrency: As popular as credit cards?
- Gold coin sells for $18.9m
Will gold prices stay high in 2022?
The gold prices are at a striking distance of $1900 an ounce, and one firm sees potential for higher prices, but the momentum might not last through the end of the year.
In an updated gold report, analysts at Fitch Solutions said that they remain bullish on gold for this year but added that the precious metal coin could struggle in 2022 as inflation pressures start to wane.
“We expect further gains (to gold) in the coming months amidst rising inflation pressuring U.S. treasury real yields, a week U.S. dollar, and renewed waves of COVID-19 infections,” the analysts said in the report.
Fitch Solutions see prices averaging around $1,700 an ounce next year.
To learn more about predictions for next year’s gold prices: Fitch Solutions sees higher gold prices but momentum won’t last in 2022
Bitcoin and cryptocurrency: As popular as credit cards?
In a recent interview with Yahoo News, Jason Butcher, CEO of CoinPayments, said he sees similarities between the adoption of bitcoin and the use of credit cards. In fact, using cryptocurrencies like bitcoin to make a transaction could become as commonplace as a credit card.
Butcher also said that regulation will play an essential role in the market’s future, “When you look at Wall Street or some of these big financial players, what has been the biggest challenge is regulation,” he said, “As regulations come into place, it will start to move all the big players. When they have clear, precise ways of making sure their businesses comply with financial regulation, they will start playing in the market and we see that today.”
Last month, the digital currency market lost roughly $1 trillion in value as bitcoin dropped sharply from record highs. However, despite the price volatility, CoinPayments said that it saw strong consumer demand for alternative payment methods.
To learn more about the rise in bitcoin and cryptocurrency: Bitcoin and cryptocurrency market will grow as big as credit cards
Gold coin sells for $18.9m
With a face value of $20, a 1933 US gold coin has been sold at a Sotheby’s auction in New York City for a record $19.9m.
The coin is the last gold coin produced for intended circulation in America, but it was never issued as President Franklin D Roosevelt withdrew the US from the gold standard in an effort to lift the country from depression.
Most of the coins were then destroyed or declared illegal to own – with the exception of the one sold on Tuesday.
To learn more about the Egyptian King who owned the coin: US Double Eagle gold coin sold for record $18.9m