Both the cryptocurrency and commodity markets appear to be reacting well in response to US President Biden’s speech after the first day of the Ukraine-Russia crisis. Gold price is now above $1,900 an ounce, green on the day and 10% above current 2022 lows of $1,780.

Bitcoin has already retraced what some traders are calling a ‘war eviction declaration’ to $34,200, and is currently trading back above $38,000 after nearly marking $40,000 in its price yesterday.

Some investors are referring to ‘buy the invasion’, speculating that the worst of the panic selling is over and now, when the dust settles on the markets, might be a good time to invest in gold and Bitcoin in 2022.

Some cryptocurrency exchanges such as eToro and FTX also allow you to invest in gold without having to buy and own the underlying asset, physical gold, instead you can simply open a long gold position with leverage.

FTX has a Tether XAUT-PERP perpetual futures gold trading pair and similarly eToro supports $GOLD contract for trading for difference (CFD). eToro has also listed Gold ETFs, the SPDR Gold ETF (GLD) and the iShares Gold Trust (IAU).

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Was gold a good investment in 2021?

Gold price chart on FTX

Gold markets have dropped sideways and slightly in 2021 – based on its annual open versus 2022, gold has lost over 4% of its value in 2021.

Gold 2021 Open Price – $1,923 Gold 2022 Open Price – $1,828

In fact, gold hasn’t changed much in the last ten years, performing far below the price of Bitcoin. Crypto Twitter has lively debates with investor Peter Schiff, who has always preferred gold to Bitcoin but has not yet convinced many Bitcoin investors to buy gold.

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This can be set to change based on the big green volume candle for February, already the highest gold purchase volume in months.

Is it a good time to invest in gold?

The precious metal has historically been seen as a ‘safe haven’ financial asset and protection against inflation – which reached record levels in 2022 – and major economic and geopolitical disruptions such as war. It hit a 13-month high in February after Russia attacked military targets in Ukraine.

If the price of gold closes a monthly candle above the $2,000 resistance, there will be little resistance above it and it could retest its all-time high, which was a brief intraday wick to $2,074 in August 2020.

Above that, gold would enter price discovery and potentially break out of a decade-long cup and handle pattern in formation. Crypto investors asking ‘is gold a good investment in 2022’ may be looking to diversify their portfolio and invest in the yellow metal on cryptocurrency exchanges that support gold trading such as eToro and FTX.

Bitcoin, seen as ‘digital gold’ based on its scarcity and finite supply, could also perform well alongside gold. It is also green on the day, up 7% in the last 24 hours. Its return on investment (ROI) in 2021 was over 50%.

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