Bitcoin and gold holdings soar as Wuhan coronavirus spurs investors to seek safety
- Investors are piling into bitcoin and gold as the Wuhan coronavirus infects markets.
- Bitcoin climbed 8% in a week to $9,380, its highest level since November.
- The amount of gold in exchange-traded funds surged to a seven-year high of 2,561 tons, Bloomberg reported.
- The Wuhan coronavirus has infected more than 6,000 people and killed 132 so far.
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Investors are plowing cash into bitcoin and gold to minimize their exposure to the fast-spreading Wuhan coronavirus.
Bitcoin has climbed 8% in the past week and hit $9,380 on Wednesday, its highest level since November. Meanwhile, the amount of gold in global exchange-traded funds has soared to a seven-year high of 2,561 tons, according to Bloomberg. The record is 2,573 tons in December 2012, Bloomberg said.
Gold prices, meanwhile, hit a three-week high earlier this week. On Wednesday, the precious metal was up 0.3%, trading at $1,570 per ounce.
Rock-bottom interest rates have fueled interest in gold, bitcoin, and other safe haven assets as investors face a minimal return on cash in the bank. Stocks and oil tend to be more volatile and were hammered by virus fears earlier this week.
The Wuhan coronavirus has infected more than 6,000 people and killed 132 so far. Chinese authorities have locked down at least 16 cities and restricted the movements of close to 50 million people in an effort to stop its spread, but cases have cropped up in more than a dozen countries including the US, Canada, France, Germany, and Australia.
