In the past three months, investors have grown increasingly concerned about the negative potential impact of elevated inflation levels and rising interest rates in 2022. But while stock prices and cryptocurrency prices have lagged, gold has outshined them both.
In the past three months, the SPDR S&P 500 ETF Trust is up just 1.1 percent, while the price of Bitcoin is down 32.6 percent. Meanwhile, the SPDR Gold Trust has quietly grinded higher by 3.9 percent during that three-month stretch as investors seek refuge from inflation.
“Despite the rise in rates and real yields, gold has held up relatively well YTD,” John Lynch, Chief Investment Officer for Comerica Wealth Management, said this week. “Miners are gathering momentum and ETF flows have been weak, so this merits watching if prices can test resistance around $1875.”
But despite gold’s relative strength as of late, many investors still see Bitcoin as the better longer-term inflation hedge. In fact, deVere Group’s Nigel Green recently said there are several reasons Bitcoin makes a better inflation hedge than gold.
“Unlike gold, [Bitcoin] is a fixed unit of account and easily divisible and transportable. Gold is not easily immediately divisible, and there are potential issues with purity and verification. Whereas Bitcoin is easily traced on blockchain technology and this is going to be a considerable advantage, especially in cross-border transactions,” Green wrote.
The biggest pro of Bitcoin as an inflation hedge is its long-term performance, gaining more than 1,000 percent in the past three years alone. However, for investors looking for a safe haven from market volatility in the near term, an investment in gold may be far less stressful than buying the extremely volatile Bitcoin.
By Wayne Duggan
Affiliate News Feeds
- Washington Examiner
- The Federalist
- The Epoch Times
- The Guardian
- The Gateway Pundit
- Judicial Watch
By Tom Ozimek Protesters claiming voter disenfranchisement and a stolen election rallied near the Arizona state Capitol on Friday, demanding that the planned Nov. 28 certification of the 2022 election be halted and a… [...]
By Tom Ozimek Thin crowds of inflation-weary shoppers hunted for Black Friday deals, with foot traffic remaining sparse in many malls across the country as Americans instead flocked online, where… [...]
Custom website and graphic designer Lorie Smith doesn't want to be forced to create websites for same-sex weddings due to her Christian faith, an issue the Supreme Court will debate… [...]
You might be hard-pressed to come by Santa this year — just another long-term effect of the pandemic wreaking havoc on employee shortages. The average working Santa is of a… [...]
Advent draws us away from the spirit-stifling societal frenzy and into the quiet, where we can commune with God. [...]
YouTube deleted the video comparing Trump's statements questioning the 2020 election results to Democrats questioning the 2016 contest. [...]
PHOENIX, Ariz.—They came. They sat. They protested, and they left. Few in attendance expected the disappointingly low turnout at a well publicized “sit-in” demonstration to demand a new midterm election… [...]
California Gov. Gavin Newsom talked about his plan for 2024 recently during an interview with Politico, as speculation circulated that he will run. Newsom, 55, reportedly told the White House… [...]
First such accord after leaving EU was predicted to bring £15bn boost but UK now lags rivalsThe first major free trade agreement signed by Britain after Brexit has been branded… [...]
Findings come amid mounting evidence that the poorest people in the UK are paying a ‘poverty premium’ for basic servicesMillions of households will be paying almost a third of their… [...]
The new Republican controlled House is going to engage in a number of investigations. Rep. Steve Scalise, who is going to be the new majority leader recently detailed the topics… [...]
Neoconservative war hawk John Bolton is trashing former President Donald Trump and championing Florida Governor Ron DeSantis for the White House in 2024. Trump has already announced his candidacy, while… [...]
From Washington Examiner: San Francisco’s district attorney has refused to release public documents and video of Paul Pelosi’s attack to conservative watchdog Judicial Watch, instead directing the group to a… [...]