Gold, not Bitcoin, is the real currency alternative, says Paul Singer.
Underdisclosed.com favorite Paul Singer, of Elliott Associates fame, is not quite as taken with the current flavor-of-the-month in alternative currencies according to WSJ and CNBC reports. Singer reportedly wrote in an investor letter:
“We think that gold is a unique investment asset, the only real money that has stood the test of time throughout recorded history,”
In case you thought there was some wiggle room in his conclusion, Singer continued:
“There is no more reason to believe that bitcoin will stand the test of time than that governments will protect the value of government-created money, although bitcoin is newer and we always look at babies with hope.”
Singer also points out one attractive aspect of gold that seemingly attracts the Bitcoin crowd as well:
“[I]t is a store of value that should be particularly attractive at a time when monetary debasement is the major policy practiced by most developed countries to keep their economies afloat.”
Singer is a fan of gold at this time:
“Gold is out of fashion, but we think the explanation for why it has been drifting down is not compelling. The economy seems stuck in the doldrums, but most so-called ‘experts’ have been changing their minds almost weekly about when they think the economy will finally begin a long-term acceleration to the upside,”
, which he thinks will be back in favor soon:
“If the global economy recovers strongly without a significant uptick in inflation, then gold might continue to be a neglected asset class. But low growth and high inflation are typical hallmarks of structurally unsound economies experiencing monetary debasement, so perhaps that phase is next, or soon to appear . . . We shall see.”
The Elliott Associates fund made 12.4% in 2013, with annualized returns of 14.0% since 1977. Its Elliott International Ltd. fund gained 11.8% last year.