Gold and Bitcoin Soar: What It Means for Investors Amid Economic Uncertainty

A week for milestones for gold.

We saw the precious metal hit the 4000 level for the first time ever this week, and right now we are looking at it holding above the 4060 level.

Now economists are commenting on this rallying gold.

Billionaire Ray Dalio says investors should allocate 15% gold to their portfolios.

Meanwhile, Peter Schiff. gold prices are warning, the greatest inflation in US history is on the way.

Meanwhile, Citadel CEO Ken Griffin says he's concerned by gold's ascent, which he thinks reflects a lack of trust in the US currency.

Meanwhile, Bitcoin also hitting new highs above the 126,000 level.

Now investors turning to these assets for safety as the US government.

And shutdown continues this morning.

Joining me to break all of this down is Gabby Barrospi, who is CEO and founder of Latino Wall Street.

Gabby, good morning.

Thank you so much for joining me.

So it's not just gold that is shining silver, also hitting a record high, and economists saying that gold prices show a lack of trust in the US currency.

So what do you make of the rally we're seeing in gold and silver?

Yes, Remi, good morning.

Absolutely it's definitely a lack of trust because if we study history every time Gold had a rally like this, I mean this is not normal, right in the Last year the the price has doubled and whenever we saw that before there was always a major change that happened whether it was in Rome in France or something you know a major whether it was a revolution, um, the fall of an empire, so history tells us that when this happened.

It means there's of course a weaker dollar, a lack of trust in the economy, but also in the government, right?

So it's definitely a red flag and yes, it's silver it's, it's doing sometimes better than gold if you look at the at the returns for this year, but it's more underestimated.

I think it's just commodities in general are going to do great because there's so much uncertainty right now, so much volatility.

And on top of all of it, the government is shut down, so that doesn't help, right?

We as investors need the economic data and when that gets delayed or paused, it does not help investors uh or anyone quite frankly, to feel confident about this economy and government.

Yeah, and Gabby, when we take a look back to where gold prices were last year, I remember having a conversation about being able to buy physical gold in Costco at over $1000.

And when you look at the ascent of the price of gold where we are a year later, it is a staggering ride.

But another asset that is making all-time highs is Bitcoin.

We are looking at the crypto major pulling back from those record highs, but what do you make of what we're hearing from some of the big banks and what do you make of this asset we're seeing in this crypto major here?

Yes, it's interesting because some people look at Bitcoin as an inflation hedge.

They really believe that if they want to, you know, make sure their dollar goes further, they should be in Bitcoin and it's also Bitcoin was created as kind of like this movement that opposed Wall Street, right, that that it was a stand against the regulation and a stand for freedom.

So if you think about it, it makes sense.

I don't think it's an inflation hedge.

I think it's so volatile.

It, it doesn't really provide much of the stability in your portfolio if one day it can be over 100,000 the next day it could go down.

Um, a lot, right?

I think it's a very risky asset.

I do think it has a place in the portfolio as long as it's not a huge percentage, but gold and silver, they are going to be more of the traditional inflation hedges for, for this context that we're living in.

And Gaby, finally, I do want to round out our discussion by shifting our focus to the major equity averages.

So, new records yesterday from the S&P 500 and the Nasdaq and earlier, given the opening gains, we did see the S&P 500 try to extend those gains.

We'll have to see.

The S&P 500 ends up today, but of course as we continue to see these all-time highs, AI bubble fears are real, and we're hearing from the likes of Sam Altman, Jeff Bezos commenting on this bubble.

So where do markets stand and are you concerned?

So, uh, look, we can look at the SAP 500 returns and.

And what's interesting is that we look at gold, it's spiked so high, it's the highest it's ever been, and then we look at SAP 500, and ironically it's, it's doing amazing too.

Normally it would have a reverse correlation, whereas if the SAP 500 was too high, the gold would, you know, be lower and vice versa, but we're not seeing that.

I not necessarily concerned about this end of year.

I think the end of year tends to be very bullish, optimistic, and really when you, when you study, right, like every year, the end of the year, it's the famous Santa it's actually like the best part.

Of the year, so, and I feel like every dip is getting bought, so I'm not too concerned about this year also with the interest rates if we're gonna cut rates, I think that's all going to help the markets and the SAP.

I am concerned about the impact of next year.

I think if we're due for a big correction, which at some point we will, right?

We can't be going up forever.

I would have to say it would be for next year when we feel the impact of, you know, higher inflation, higher uncertainty, and if we can, you know, get it together with our leaders that of course is not going to help.

A lot to digest here, Gabby.

So as always, thank you so much for joining us and thank you so much for weighing in on gold, the broader market, as well as Bitcoin.

Thank you.