Gold Bug Peter Hug Warns Inflation Will Be Slow, Will This Delay Bitcoin’s Bull Run?

The global trading director of a major precious metals firm is warning gold investors to not pay the currently enormous premiums until inflation sets in much later down the line. However, Bitcoin is booming for similar reasons as gold. Does this mean that Bitcoin‘s next bull run may be delayed until inflation truly takes hold?Kitco’s Peter Hug: Inflation Won’t Arrive in Short-Term, Gold Demand Isn’t There YetTo combat the devastation the pandemic has done to the economy, the Fed has been printing money at an unprecedented rate. Stimulus packages already reach in the trillions, and the Fed has pledged to do whatever is necessary to sustain what little positive momentum is left.During periods of economic downturn, gold serves as among investor’s first choice to park capital. The precious metal has earned safe-haven status as a result.Related Reading | Stimulus Checked: Here’s The ROI on a $1,200 Investment in Top Crypto AssetsTrade tensions between the US and China and fears of recession coming caused gold to pick up steam in early 2019, just as Bitcoin went on another parabolic rally.Gold is now trading at above $1,700 an ounce and analysts are pointing to prices of $3,000 an ounce due to the coming inflation.However, Kitco’s global trading director Peter Hug isn’t convinced that inflation will be here so soon.Hug, who helms the trading division at the precious metals firm, is bullish on gold in the medium to long term when he says inflation will actually rear its ugly head. However, in the short-term, Hug says the demand for gold just isn’t there yet.“People are basically deferring their rent payments right now and they’re trying to hoard cash. They’re not going to be chasing goods, except for necessities, so I don’t see the equation of supply and demand creating massive inflation in the short term,” he explained.Gold, however, continues to trade at a premium Hug warns investors is simply “ridiculous.”
This article is Originally posted on CoinCentral.com
Author: Tony Spilotro

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Author: Tony Spilotro