Gold is set to outperform stocks and cryptocurrencies in 2023 as the Federal Reserve eases on its tightening cycle, according to Gareth Soloway, President of Verified Investing Education and InTheMoneyStocks.com. Soloway has over 20 years of experience as a professional trader, and correctly called the Bitcoin bottom for 2022.
“I still think gold will be the best performer [in 2023],” he told David Lin, Anchor and Producer at Kitco News. “You can’t get away from the fact that the Fed is now keeping interest rates where they are. They’re probably going to tighten a little bit more, but the bottom line is they’re not going to be looking to cut until we see a massively nasty recession.”
However, his prognosis for Bitcoin was not as positive, which he forecast could reach as low as $9,000. Soloway said, “you don’t have money being printed… I would daresay that without the Fed’s printing of money, Bitcoin is headed towards twelve to thirteen thousand [dollars], and maybe as low as $9,000.”
Although Bitcoin is up 42 percent since the start of January, Soloway cautioned that “it’s a nice bounce, but you’re still in an overall downtrend,” highlighting the fact that Bitcoin is still down 65 percent from its all-time high of $68,789.63 in November of 2021, and has continued to trend downwards since then.
Soloway, who teaches trading courses at VerifiedInvestingEducation.com and has had a successful career as a trader, said that getting a proper education in investing is important for beginners.
“When I started trading back in the late 1990s and early 2000s, I didn’t have any guidance,” he recalled. “There was no course out there… I can tell you, I lost a lot of money. Thank goodness I didn’t have a lot of money back then.” He added, “If I had the ability to learn this stuff, I would have cut my learning curve by an enormous amount of time, years. I would have, at this point, so much more money than I do right now.”
Soloway suggested that paying for education, in the long run, is cheaper for beginners than making bad trades and learning through bitter experience.
“There is no easy shortcut,” he observed. “The market makes you pay, or you pay for education. The route of education is always the cheaper method.”