Safe Haven Divergence
Gold has smashed through $2400/oz, driven by sovereign buying. Bitcoin, usually correlated during fiat debasement, has lagged in the short term.
The decoupling
- Gold: Driven by Central Bank accumulation.
- Bitcoin: Driven by retail and ETF flows.
We believe this divergence is temporary. Bitcoin's 'digital gold' narrative will reassert itself as sovereign debt concerns mount in the US and Europe.
Wizard's Verdict: Long both. Hard assets win in this regime.