Gold at all-time high, and bitcoin at 18-month peak, as traders bet on US interest rate cuts early next year, while 1,600 jobs are being lost as Spotify cuts costs
In London, the stock market has opened lower, failing to follow gold’s lead.
The FTSE 100 index down 39 points or 0.5% at 7490 points, having ended at a six-week high on Friday.
The M&A speculation has skyrocketed shares in William Hill’s parent company today which is trading up by around 13%. 888 currently has a market cap or around £355 million, sharpy below the reported offer price from Playtech.
Shares in 888 have had a tough time this year, shedding over 20% year-on-year even after today’s surge and 50% in the past five years, highlighting the potential for an opportunistic takeover. Playtech is not the only party reported to be interested – in November, the Financial Times reported that US betting group DraftKings was also eyeing up a bid for 888 over the summer.
Gold has hit new record dollar levels – reflecting not just current uncertainty, but also the de-dollarisation narrative and it’s attractions as an inflation and market hedge, and long-term value.
Let’s get the “desirability” and emotional aspects out the way. I am told a significant influence on the price of gold is the weather – a good monsoon in India means farmers buy more bangles for their daughters’ weddings from the gold souks. It is beautiful. It is lustrous. It is unblemished. It is Gold. Always believe in… Gold! There will always be demand for gold for personal adornment – which is pretty much irrelevant when it comes to its proposition as an investment asset.
As an investment in its own right gold performs well; over the last 50 years Gold prices have risen over 3000%, compared to a 3500% gain in the S&P 500. However, in periods of financial instability gold outperforms stocks – notably over the past 20-years even though the prices of financial assets were artificially juiced by the effects of zero interest rates! In terms of risk, companies come and go, but Gold is forever. If the world remains unstable – and no reason to think it won’t – then gold should be front and centre on your radar – no matter how archaic you consider it.
