Gold cooled after a year’s rally that won rebound mode stocks, but even with stocks in rebound mode, there’s room for market hedges to move high, according to David Chassler, head of multi-asset solutions at fund manager Van Eck.
“I couldn’t imagine a better background for gold,” said Shassler on CNBC’s “ETF Edge.”
The US government said it had “huge debt, huge spending, huge disruption,” adding that it would not see any change soon.
David Einhorn of hedge fund icon Greenlight Capital reiterated his feelings about CNBC’s “closing bells” in his appearance from the Sohn Investment Conference on Wednesday. “There’s a bipartisan agreement that we’ll never do anything about the deficit until we reach the next crisis,” he said.
Einhorn said he thinks it could reach $5,000 in 2026.
Schaasler also sought Gold’s price to reach $5,000 next year.
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Gold made a big jump last year despite the recent recession.
Shassler is also bullish in the crypto, the new hedge of the market, and sees two asset classes moving in the same direction. “Bitcoin is a risky place for gold,” he said.
It is affected by a major emotional shaking and can trade in parallel with the stock’s risk-off movement, but Bitcoin has risen by around 60% last year, and in contrast to Gold’s recent dip, Bitcoin has risen 10% last month.
There are new tools from the ETF industry. Investors want to consider capturing upside down with Bitcoin while limiting risk. “I was impressed by what’s happening in an option-based world using ETFs,” he said of the cryptographic ETF with built-in protection for this week’s ETF Edge.
The use of options to limit volatility in returns is popular with Equity ETFS, but Rosenbluth also recommends investors consider ETFs like the Calamos Bitcoin 80 Series structured Alt Protection ETF (CBTJ). There is an upside cap, but if the underlying assets fall by more than 20%, the investor’s maximum losses will cease there.
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Bitcoin performance over the past year until May 15th, 2025.
