Gold News: Gold Funds Are Buying Bitcoin Now?

You knew it was going to happen, now it’s official gold news.  Old Mutual Gold & Silver Fund, dedicated to its namesakes, decided to start buying Bitcoin back in April.

Now they’re up to $11 million in Bitcoin holdings, or about 5% of the fund. Since many people see Bitcoin as a store of value – similar to gold’s traditional role – this isn’t completely unexpected. The big question is how many other similar funds will make a similar decision and stretch into the crypto-currency realm? You can read about Old Mutual’s moves here. Many see Bitcoin as a trade like a penny stock – buy it now and hope the price keeps shooting up.  

What do you think? Should gold funds should be buying cryptocurrency? Sound off in the comments below.

 Related: These 3 Charts Show How Well Gold is Doing Lately 

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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