Renowned financial analyst Peter Brandt tweeted on Monday that, in his opinion, people should consider gold and Bitcoin as “catastrophic insurance policies.” He further added that these assets must be treated as policies for which premium is paid, but people hope that they are never needed.

IMO, precious metals (#GOLD and $BTC) should be viewed as catastrophic insurance policies — not as investments. A premium is paid, hoping the policy is never needed. But if it is needed, the owner is protected against a worst case scenario. https://t.co/JrMhQe0jIF — Peter Brandt (@PeterLBrandt) March 23, 2020

In another tweet, he made an argument against precious metals being hedged against inflation. Brandt said,

“Many claim that Gold and Silver are excellent long-term hedges against inflation and are stores-of-value. Definitely NOT true for Silver, and Gold is finally back to inflation-adjusted levels from 40 years ago.”

Days after bleeding below $6,000 apiece, BTC showed some signs of recovery on Tuesday, as it is moving at more than $6,788 at the time of writing this article. However, this is still significantly lower than what it was at the beginning of the Coronavirus outbreak in late February. Since 01st March, Bitcoin lost almost 50% value on a couple of occasions, which is correlated to the crash in global financial markets.

The Federal Reserve Bank of St. Louis president James Bullard predicted that unemployment rate in the US would hit 30% in the coming 90 days, while the GDP could witness a fall by as much as 50%, and that could prove to be devastating, not only of the United States but for the entire planet. If Peter Brandt’s words turn out to be true, the future could be even darker as then there wouldn’t be any possible hedge available against the inflation.