Gold Shines Amidst Uncertainty: A Strong Alternative to Bitcoin

Gold has been on a remarkable rally, recently hitting record highs, outperforming many other assets. In fact, over the past year, gold has more than doubled the S&P 500’s returns (Swint). This surge is driven by increased demand from central banks, particularly in China and India, which are diversifying their reserves (Swint).

Gold’s recent performance contrasts sharply with Bitcoin, which has dropped 24% since its peak when Trump took office (Salisbury). While Bitcoin is viewed as speculative, gold remains a stable store of value, especially in times of geopolitical uncertainty and economic instability. As experts like Eric Wallerstein from Yardeni Research predict, gold could hit $4,000 per ounce by the end of the decade (Salisbury).

Geopolitical events, such as the Russia-Ukraine conflict, and weak U.S. economic data have further fueled gold’s appeal. Central banks and investors see it as a hedge against global instability (Yawger). With rising inflation and a weaker dollar, demand for gold is expected to continue.

Looking ahead, gold’s price is forecasted to reach as high as $3,500 per ounce, with strong support from ETFs and mining stocks (Swint). Whether through physical gold or ETFs, it remains a strong investment choice.

Sources:

Salisbury, Ian. "Gold Is Beating Bitcoin Since Trump Took Office. Here’s Why." Barron's, 1 Mar. 2025, www.barrons.com/articles/gold-bitcoin-prices-trump-crypto-61664a15.

Swint, Brian. "Gold Price: The Rally Can’t Be Stopped." Barron's, 27 Feb. 2025, www.barrons.com/articles/gold-price-rally-invest-8b5ee3f5.

Yawger, Robert. "Front-Month Gold Pushes to New Record High." The Wall Street Journal, 24 Feb. 2025, www.wsj.com/finance/commodities-futures/gold-edges-higher-supported-by-weak-u-s-economic-data-da69ecc6.