June 21th, 2024 | 7:54

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Gold vs Bitcoin: Why not have both in your portfolio?

Jesus Carames

May 16, 2024 | 8:13 p.m.

Since June 2023, gold has outperformed Bitcoin. However, this raises a crucial question for investors: why not consider both assets in a diversified portfolio?

Gold: The Traditional Refuge

Gold has historically been a safe haven in times of economic uncertainty. Its value has remained relatively stable over the years, and in periods of crisis, investors often turn to gold to protect their wealth. Since June 2023, gold has shown consistent performance, reaching all-time highs of $2.100 per ounce in May 2024, reaffirming its position as a reliable asset.

Bitcoin: Digital Innovation

Bitcoin, on the other hand, represents the new era of digital investments. Since its creation, it has shown explosive growth and has attracted a new generation of investors interested in its disruptive potential. Although its price can be volatile, its growing adoption and institutional interest have given signs that it could establish itself as a store of value in the future. In the same period, Bitcoin has seen significant growth, reaching $68.000 in April 2024, after starting the year around $42.000.

Performance Comparison

The accompanying chart shows how gold has outperformed Bitcoin from June 2023 to April 2024. The price of gold has gone from approximately $1.900 per ounce in June 2023 to over $2.100 in May 2024. In comparison, Bitcoin has had a more volatile rise, rising from $42.000 in January 2024 to a high of $68.000 in April 2024, before stabilizing around $64.000 in May 2024.

Diversification: The Key to Success

Diversifying is essential to minimize risks and maximize returns. By including both gold and Bitcoin in a portfolio, investors can benefit from the best of both worlds: the stability of gold and the growth potential of Bitcoin. This strategy allows you to protect yourself against market volatility and take advantage of the opportunities offered by these two unique assets.

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