Gold reduces portfolio volatility and improves returns, while Bitcoin's returns diminish with rising volatility.

The World Gold Council compared gold and Bitcoin's performance during volatile markets, finding gold consistently reduces portfolio volatility while improving returns, even with increased allocation. Bitcoin, however, shows diminishing returns with rising volatility as allocation increases. Gold's stability, central bank holdings, and global store of wealth status make it a suitable safe haven asset, while Bitcoin's price fluctuations and correlation with risk assets don't demonstrate the same safe haven characteristics as gold.

August 17, 2024
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