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Can the Russian vaccine registry deflate store-of-value assets?


Just over 8 months after the first case of Covid-19 was known in China, the first vaccine has been registered in Russia. Although there are still some doubts about it, the Russian president claims to have tried it with his own daughter.

At the time of writing, the Coronavirus Pandemic continues to rage, now with the focus on the United States, Latin America and India.

In today’s reflection, we wonder if the certainty of a vaccine can lead to store of value assets such as Gold, Bitcoin and the Japanese yen starting to lose ground. Although it is still premature to draw those conclusions, it is time to start taking it into account, since everything can change from one day to the next.

WHO is cautious about Russian vaccine

“This Tuesday a vaccine against Covid-19 was registered for the first time in the world,” said the Kremlin chief in a meeting with the Cabinet of Ministers. A vaccine, which according to Putin, has passed all the necessary tests and allows a “stable immunity” against the coronavirus, reports

The World Health Organization (WHO) cautiously received the news that Russia has registered the world’s first vaccine. He pointed out that this, like the rest, must follow the prequalification and review procedures established by the agency.

“Accelerating progress should not mean compromising security,” WHO spokesman Tarik Jasarevic said at a press conference. In addition, he added that the organization is in contact with the Russian authorities and other countries to analyze the progress of the various vaccine investigations.

The Russian vaccine was not among the six that the WHO noted last week were more advanced.

Value reserve assets

Since the Coronavirus pandemic broke out, Gold and Bitcoin have been the safe haven assets par excellence. Will the upward trend of these assets continue with the appearance of the vaccine?

Financial markets as we know are driven by expectations. And the truth is that the cure against Coronavirus is now closer, luckily, which can deflate the appetite for refuge assets.

At press time, Gold has an annual ROI of 31%, while Bitcoin has 62%, exactly double.

At 09:30 from Argentina (GMT -3), Gold loses key barrier of $ 2,000, while Bitcoin retreats to $ 11,700, moving away from the annual high of 12k scored in yesterday’s session.

On the other hand, the yen loses ground against the dollar, which is already trading again at 106, after having touched a low of 104.20 last week.

In short, the Russian vaccine brings a little hope that the cure is closer. The first reaction of institutional investors is to undo safer asset positions, with the aim of looking for riskier assets, such as the stock market for example.

Wall Street futures anticipate a marked uptrend session start. We will see what happens, the day is long and we are not yet vaccinated.

I say goodbye until tomorrow with this phrase from Star Wars VIII:

“Hope is like the sun, if you only believe in it when you see it, you will never get over the night.”

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