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Gold belongs on the blockchain markets, according to Sprott CEO Peter
Grosskopf, who said that the precious metal is the digital sphere’s best
“Gold will never achieve regular consumer acceptance in your average
household,” Grosskopf told Kitco News on the sidelines of the Mines and
Money conference in New York, referring to gold’s insufficiency as an
everyday payment metric. “Gold is, in the end, a monetary replacement,
and in order to be an effective monetary replacement, it needs to be used by a
Cue digital gold. As of recently, Sprott has undertaken several new ventures
that fuse contemporary digital blockchain technology with conventional precious
metals trading practices. Grosskopf justifies this transition with the claim
that the future of gold is digital.
Despite its resemblance to bitcoin in terms of durability, portability, and
fungibility, Grosskopf is careful to point out digital gold’s unique
advantage – its security. “[It’s] more secure because it is
backed by the physical metal and it has a ledger that is being tracked, so gold
can’t be hacked,” he stated.
Grosskopf’s comments come as the gold-silver ratio hits historic heights,
last valued at 86.94, the highest level since 1993. Spot gold last traded at
$1,284.80 an ounce, while spot silver last traded at $14.85 an ounce.
Grosskopf’s statements are complemented by a bullish forecast of the
gold market. Labeling gold as a chameleon, he argues it can achieve substantial
growth if losses occur in other economic markets, such as negative real rates.
“Gold is mostly a hedge asset, and the most obvious way that it can turn
it around right now is for the large financial markets, credit and equity
markets, to change their tone,” he said.
In contrast to the increasingly bearish attitudes currently surrounding
gold, Grosskopf noted the rise in gold sentiment, revealing that more
sophisticated investors are entering the market.
“Nobody likes gold right now and we’re contrarian, and we think
there’s great investment opportunities across the spectrum in gold even
if it doesn’t move,” he said.
And when gold treads, silver sprints, Grosskopf argued. He sees greater
opportunities arising for silver investors, revealing that “investors in
general tend to be real silver bugs because they’re looking for that
dramatic move, which we think, by the way, is coming.”
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.