Argentinian businessman Eduardo Elsztain recommended his compatriots to invest in gold and other “real assets” in order to make savings in the complex economic situation caused by the coronavirus pandemic.

In a letter to his investors, Elsztain noted that historically, Argentine citizens have sought refuge in the US dollar to avoid a devaluation of the peso. However, he emphasized that in times of crisis like the current, the US currency is constantly increasing and its price is never high enough. In other words, the higher the exchange rate, the more demand the currency has.

“The logic behind this stance is that in times of crisis there is no high enough price for the foreign currency because it is important to avoid the collapse of the currency itself,” he said in the letter quoted by the media. Argentine digital.

Regarding gold investments, Elsztain emphasized that his The recommendation is aimed at everyone who makes savings, whether on a large or small scale. His advice is that a significant portion of this liquidity should be redirected to the “only currency that cannot be printed: gold”.

In the document entitled “Chapter Three (The Most Difficult Crisis in Our Life)”, Elsztain examines what has happened to the coronavirus and what will happen in the future. The executive stressed that the worst will be over by 2021 as long as social distance is maintained and a vaccine is found.

He said this to finance the deficit in the industrialized countries The authorities have no hesitation in printing as much currency as necessary to reduce this urgency in the short termThis is especially true when this emission has no impact (e.g. inflation), as is the case today in these countries.

Economic recession and bitcoin

Elsztain’s message comes just a month after the International Monetary Fund (IMF) predicted a historic global economic recession due to the coronavirus pandemic.

Although gold has traditionally been considered a safe haven in difficult times, Argentines are also considering buying cryptocurrencies like Bitcoin (BTC).

Last Monday, CryptoNews reported that the volume of bitcoin exchanges on the peer-to-peer platform Localbitcoins in Argentina had hit a new record. A trend that started last week and is also related to local exchange controls.

In Argentina, the economist Javier Milei has also questioned his country’s monetary policy and predicted that the worst economic crisis will ever occur. In early May, Milei described Bitcoin as an alternative to dealing with upcoming inflation.

Another millionaire, this time the American investor Paul Tudor, announced a week ago that he was contracting Bitcoin futures Protection measure against a possible global inflation wave due to massive household costs.

Infectious respiratory disease COVID-19, which is produced by the SARS-CoV-2 coronavirus, has spread worldwide with more than 4.4 million cases discovered and more than 303,000 deaths worldwide. 353 people have already died in Argentina, and scientists have yet to find a vaccine to combat the disease.


Add Comment

Your email address will not be published. Required fields are marked *