Gold Set to Rise, But Crypto Expected to Outperform, Says Ex-Goldman Sachs Exec

Raoul Pal, a macroeconomic expert and CEO of Real Vision, believes that gold is poised for an upward price movement due to ongoing monetary debasement.

He highlights that the massive U.S. debt burden, especially the increasing interest payments, will continue to drive the precious metal’s value higher. However, Pal made it clear that while gold could see gains, its potential for growth will be far surpassed by that of digital assets, particularly cryptocurrencies.

In a recent interview on the Wealthion podcast, Pal explained that both gold and cryptocurrencies are tied to similar economic factors, mainly the debasement of currencies, but crypto holds a much stronger advantage.

He emphasized that digital assets, unlike gold, offer much higher beta—meaning they are more volatile—and therefore, higher risk-adjusted returns. According to Pal, this makes cryptocurrencies a more attractive investment for those seeking greater long-term profits, despite the higher risk involved. In comparison, he views gold as a safer but less rewarding option.

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Pal also shared his thoughts on the future of recessions, noting that with the persistent trend of currency debasement, economic downturns will be increasingly difficult to come by. He explained that recessions are typically triggered by credit events, where collateral loses value in relation to debt, creating a cycle of economic contraction.

However, by continually debasing the currency, the underlying collateral remains stable, which is why the U.S. avoided a recession in 2022 despite some economic challenges. Pal argued that without the Covid-19 pandemic, the 2020 recession would not have occurred, pointing to how central banks’ ongoing monetary policies have redefined the typical triggers for recessions.

Alexander Stefanov