Gold and Bitcoin both enjoyed a sustained dual price surge this year. Bitcoin reached historical highs in March, surpassing $73,000, while gold peaked at more than $2,400 per ounce in May. As economists debate the likelihood of persistent inflation and higher-for-longer interest rates, two alternative assets have captured the attention of financial professionals and investors alike: Bitcoin and gold.
Although gold has historically been considered the ultimate safe-haven metal and Bitcoin is commonly viewed as one of the riskiest speculative investments, these alternative assets are frequently compared together as the ultimate "anti-fragile" assets in a portfolio. Both gold and bitcoin may be "mined," yet their real-world use cases are limited, except among investors seeking shelter from macroeconomic storms. Why are investors flocking to Bitcoin and gold this year more than ever? Are they created equal as inflation hedges? Financial experts give their take on which asset class may suit the majority of their clients.
Uncertain world The second half of 2024 could bring more volatility. More than 50 countries, including the United States, will hold elections this year, raising the political risk of populist anti-market regimes, civil strife, coups, or hung parliaments. Meanwhile, major armed conflicts continue in Europe and the Middle East, and mounting tensions in other regions could rattle markets, too.
The Goldman Sachs Global Institute notes geopolitical risk and the U.S. pr.