Gold outperforms bitcoin ETFs and stocks amid geopolitical risks So, should investors top up portfolios with gold or bitcoin?
Gold is a dark horse in 2024.
While traders have focused on stock markets like the S&P 500 and spot bitcoin exchange-traded funds like BlackRock's IBIT, gold's returns have outperformed both.
at $2,660 per ounceGold has posted a 29% gain so far this year – almost 5% more than IBIT, 24% profit Since its January 11 launch.
In comparison, investors S&P 500 This year has fared slightly worse with just under 20% returns.
“Gold Climbs High Tortoise Style” Said Bloomberg Intelligence analyst Eric Balchunas.
The precious metal took another leap this week amid rising tensions between Iran and Israel as Bitcoin fell.
Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered explained this Gold acts as a hedge Bitcoin is better suited to hedge against geopolitical risks, problems in traditional finance such as bank failures or de-dollarization.
Does it stretch?
History suggests that even if gold rises due to geopolitical tensions, its outperformance may not last.
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In the US-Iran surge of 2020, gold initially outperformed other assets, but Bitcoin rallied more strongly in the following months.
This is one A stable pattern In recent years, according to JAN3, Aquabitcoin is the developer behind the digital wallet.
Bitcoin has seen its ability to bounce faster than gold during major events such as the Covid-19 pandemic, the 2020 US election and the Russian invasion of Ukraine.
According to a recent report by asset management giant BlackRock, Bitcoin typically takes 60 days to recover after major geopolitical events.
Bitcoin or Gold?
So should investors invest in gold or bitcoin? Matt Haugan, chief investment officer at asset manager Bitwise, tackles that question A blog Earlier this week.
For him, it's a question of having more return or less risk. Looking at estimates provided by Bitwise, he compared portfolios of traditional stocks and bonds with up to 5% in bitcoin or gold.
The simulation is based on data from January 2014 to September 26, 2024.
Portfolios with 5% Bitcoin can generate over 208% return on investment, while gold allocation can generate over 100% return on investment.
For Haugan, the answer to which of these two assets to invest in is simple: “Bitcoin.”
Crypto market movers
Bitcoin has gained 2.3% in the last 24 hours to around $61,800. Ethereum rose 1.7% to $2,392 over the same period.
What are we studying?
Messari Crypto Conference Sponsor Is A Tax Cheat Who 99% Of Americans Shouldn't Pay — NewsBinance crypto market share falls to 4-year low – Not boundIMF Again Urges El Salvador to Strengthen Regulatory Framework and Bitcoin Oversight – CoinDeskBitcoin long-term holder losses 'deceptive,' says Glasnode – Not boundSEC's top crypto cop quits a month before election After Gensler? – News
Kyle Baird is News Weekend Editor. Got a tip? Email [email protected].
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