The question for most gold and bitcoin investors who had not liquidated their holdings by mid-March became: When would the currencies finally start to bounce? Notorious gold bull Peter Schiff said the U.S. economy is already in freefall, a position he solidified when Congress signed a trillion-dollar aid package into law earlier this week.
"It's like we've already jumped off the top of the building, off the top of the Empire State Building," Schiff warned. "There is no way to change our minds now. We are going to hit that pavement."
Not surprisingly, Schiff believes that when the economy does hit the pavement, gold investors will benefit. However, proponents of bitcoin say their currency is likely to offer far more benefits when things do hit bottom and start to bounce.
"I cannot express how bullish I am on bitcoin," tweeted Global Macro Investor founder and CEO Raoul Pal. He added he expects gold investors to be shielded from the chaos in the economic system also, "albeit with a smaller potential upside than for bitcoiners."
Pal's sentiments came in the wake of a massive bitcoin rally on March 20, when the cryptocurrency climbed to $6,650. Compared to the prior week's lows, bitcoin appreciated nearly 80 percent in just about seven days. Compared to holding stock in a company that may or may not be able to permitted to do business in the coming weeks or months, investing in digital currency suddenly seems far safer than the stock market to many investors who previously had never considered investing in bitcoin or holding more than just a little bit of gold as a portfolio hedge.
"These are truly extraordinary times," said Australian fund manager and co-founder Angus Coote. "I've been in the business for 25 years, and this makes the global financial crisis look like child's play."
Are you investing in gold, bitcoin, both, or neither? Why? When did you start?
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