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Time for gold and its virtual cousins

Until there is clarity about the type and extent of economic recovery, cryptos will also do well

gold, jewellery
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Devangshu Datta
Let’s suppose a trader focused on gold, copper, oil and Bitcoin — four commodities with different profiles. Gold and Bitcoin vary inversely with economic uncertainty. The more unclear and risky the future, the more bullish interest there is in these two. Copper and crude oil have a direct relationship with growth. 

This quartet has one important characteristic in common: Supply is not easy to change. Bitcoin is designed with a mathematical cap on supply. The other minerals are mined. Even if a vast new source of these three minerals is discovered, it will take large investments and plenty of time before
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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