With Bitcoin and other cryptocurrencies gyrating wildly in recent weeks, their purported use as a store of value appears to be in doubt. But with inflation returning – temporarily, if Fed Chairman Jay Powell is to be believed – the need for alternative assets is on the rise. That in turn has sparked renewed interest in gold, a traditional hedge against inflationary pressures used in many portfolios.
Jim Cramer says that it always pays to diversify, and with cryptocurrencies looking more like speculative assets rather than hard assets, gold remains a good option. He spoke Thursday night with Mark Bristow, president and CEO of Barrick Gold (GOLD) - Get Report on Mad Money. Shares of Barrick are up more than 10% over the past month.
Bristow told Cramer that Barrick had three things in mind when it merged with Randgold a few years back. First was to fix the balance sheet. Second was to retain all of the best people. And third was to become return driven, which it now has. accomplished with the addition of a dividend.
Barrick Gold, Bristow said, is focused on mining responsibly and paying attention to both the environment and social issues. Barrick is also a large copper producer, Bristow said, accounting for about 20% of overall production. Demand for copper continues to be strong.
Finally, when asked about the scarcity of gold, Bristow noted that only 50% of the world's gold reserves have been replaced since the turn of the century, which is why it remains so valuable.
Real Money's in-house technical analyst Bruce Kamich took a look at Barrick today and has a bullish strategy for the stock. Find out more about how you can profit from this and other securities Bruce has recently analyzed.
After putting in a double bottom around $1,680 an ounce in March, gold has seen a steady rise, trading around $1,875 an ounce in recent days.
For investors considering gold, there are a number of plays to think about, ranging from holding the physical metal or investing in an ETF tied to its price, to investing in the companies that dig it out of the ground.
Real Money’s Timothy Collins recently identified a strategy for playing an exchange-traded fund for gold. You can find out more about how to profit from his ideas here.
The trust is one of the securities Real Money's Doug Kass is watching closely. To find out more about how you can profit from Doug's ideas on ways to play the ETF and other stocks, check out Real Money.
Real Money contributor Maleeha Bengali says for the new generation of digital asset traders, traditional investments like gold and silver seem rather boring. But investors shouldn't just choose between Bitcoin and gold coin, especially when the risk reward is skewed so much in opposite directions.