Gold Is Getting Dumped For Bitcoin!
Jefferies is an investment firm managing a portfolio worth $51 billion.
The firm, with $51 billion in assets under management as of Q3 2020, is converting some of its gold holdings in its long-only global portfolio for US dollar-denominated pension funds, which was created in 2002, according to Business Standard. Wood says he plans to increase exposure to cryptocurrency in this portfolio if the market sees a correction after its recent pump.
“The 50 percent weight in physical gold bullion in the portfolio will be reduced for the first time in several years by five percentage points with the money invested in Bitcoin. If there is a big drawdown in bitcoin from the current level, after the historic breakout above the $20,000 level, the intention will be to add to this position.”
The allocation in this particular fund is 45% in physical gold bullion, 30% in Asia ex-Japan equities, weighted according to the long-only thematic portfolio, 20% in unhedged gold mining stocks and 5% in Bitcoin.
The second paragraph holds the money quote. Jefferies is intending to double down on BTC if there is a drawdown from the current level.
I remember talking about gold and Bitcoin with a friend of a few years ago. He's a bit old fashioned and did not buy Bitcoin's digital gold narrative. I tried to explain to him how Bitcoin was analogous to gold in its provable scarcity and difficulty of mining. He does a lot of investing and I tried to convince him to invest 1% of his net worth in cryptocurrencies (primarily Bitcoin). Had he done that, say in the spring of 2019, he'd be sitting pretty now and watching exploding institutional interest in BTC.
We're truly living in remarkable times. No other time in history have early adopters been paid as extravagantly as now. Crypto is no the only space in which this is taking place. The same applies to technology stocks.
Source:
https://dailyhodl.com/2020/12/19/51-billion-finance-giant-jefferies-selling-gold-for-bitcoin/
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