The cryptocurrency investors followed lustre of Bitcoin lately, however are now longing for stability that gold is known for. As per the Wall Street Journal article, searches for “crypto” and “gold” achieved their ultimate height since 2018, whereas Google searches for “how to buy gold” hit an all-time high this month. The SPDR Gold Shares ETF, major ETF sponsored by physical gold raised 20% in the past six months.

Contrary to gold, bitcoin lost the enticement of investors after the crash of 50% value since the end of 2021 and collapse of the cryptocurrency exchange FTX. Gold has sustained its prices even at the time when both stocks and bonds had double-digit losses, going along with the further surge up to the record of $2000 per Troy ounce due to the volatile state of banking sector today. Despite gold's total value of $14.5 trillion is relatively smaller compared to the current market value of all cryptocurrencies of $1.2 trillion.

Rob Saudelli from Chilliwack, British Columbia, is a typical example of shift of cryptocurrency holders toward gold and silver after the upsetting losses in the volatile cryptocurrency markets. His portfolio, which was 10% Bitcoin and Ethereum, has currently diminished to only 5%. On the other hand, gold and silver pose 10% and 14% in his holdings now. Many investors like Luis Sousa, a 29-year-old veterinarian from Cardiff, Wales, as reported in the WSJ article, switched from cryptocurrency to gold Britannia coins since late 2021.

The stability and consistency of gold versus the risk of cryptocurrency are the main authors for these conversions. While gold may not provide the same exponential gains as cryptocurrencies, representing an asset with more reliable store value than cryptocurrencies is beneficial in conserving wealth. Daniel Fisher from Physical Gold Ltd. stated that sales of gold and silver coins have increased remarkably due to the decrease in cryptocurrencies and stock-market turbulence. Moreover, Mitch Day agrees that gold offers the best possibility to preserve and generate long-term wealth.



Other News from Today