Gold vs. Bitcoin

By TradeSmith Editorial Staff

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In an effort to sidestep the uncertainty that was a portfolio killer in 2022, investors are taking a new path in the new year — with a double-team strategy that simultaneously focuses on one of the oldest financial assets around… as well as one of the newest.

That “old” asset is gold. And the “new” asset is Bitcoin (BTC).

Gold started the year at $1,836 per ounce and since has been flirting with $2,000 per ounce.

Bitcoin was $16,619 to start the year and is trading for more than $27,000 as of this writing.

Gold bugs like the “yellow metal” because it can give them “cover” during market-altering events like war, virulent inflation, and economic turmoil… all of which we’re experiencing now.

In short, gold is a “safe-haven asset” against uncertainty.

Then there’s Bitcoin, whose presence here may surprise you given the “Wild West” reputation cryptocurrencies continue to carry. But we’ve seen more people view Bitcoin as a safe haven after banks started falling like dominoes in March.

Just look at the chart below, which shows Bitcoin’s upward trajectory from its March 10 levels under $20,000:

Now, if you’re deciding between owning gold and Bitcoin — or how much to allocate to each — the key question is this: Which is the better portfolio hedge against stock market declines?

The answer comes down to diversification and knowing how the price of an asset is typically correlated with stocks.

So, in less than six minutes, Wade Jansen, our in-house options and income expert, will tell you exactly what you need to know:

If you are a member of Constant Cash Flow, you can find this type of advice each week in the exclusive feature “Three-Thought Thursday.”