Gold: How far can its value go this year?

Bitcoin and other cryptocurrencies may not be the digital Gold on display. For example, bitcoin prices fell more than 15% in 2022.

 Other top cryptocurrencies, such as Ethereum, Solana, and Elon Musk's favorite Dogecoin, have also dropped sharply this year. At the same time, GoldGold rose more than 4% and returned to $ 1,900 an ounce, flirting once again with record highs above $ 2,000.

Experienced investors realize that when the US Federal Reserve is raising interest rates aggressively, Gold and other precious metals such as silver and palladium are the best compensators for inflation.

"It is now clear that bitcoin is being traded alongside risky assets, instead of [as] a haven," Swissquote analyst Ipek Ozkardeskaya said in a company report earlier this month. "Bitcoin is not yet digital gold; it is more of a crypto-mediator for the Nasdaq."

Not even Musk's acquisition of Twitter (TWTR), which some observers believe could lead to even more cryptocurrency promotion on the platform, or the news that significant investment in Fidelity will allow its customers to hold bitcoin in 401 retirement accounts ( k) worked positively. Bitcoin is now behind and below $ 40,000.

Many experts point out that Gold still has many advantages over digital assets. 

There are growing concerns that rampant inflation could lead to an economic slowdown, further strengthening Gold.

"The risks of stagnant inflation are rising, and geopolitical tensions show little sign of a quick fix," said Louise Street, a senior market analyst at World Gold Council, an industry research firm.

"Gold has historically recorded one of the strongest performances in a stagnant inflationary environment, in which stocks are suffering, and commodity prices are falling."

Ultimately, Gold has been the constant guarantee of value ​​from the beginning of the world.

Earlier this month, analysts at the Wells Fargo Investment Institute also said that "gold can be held high, is globally recognized, and has a quarter of volatility" compared to bitcoin, stocks, and other assets.

 With that in mind, Wells Fargo analysts predict that Gold could rise as high as $ 2,100 an ounce this year.

However, it is not just interest rate hikes and inflation concerns raising Gold. 

Mace McCain, chief investment officer at Frost Investment Advisors, said late last month that Gold had also emerged as a safe port, partly because of concerns about Russia's invasion of Ukraine.

"As events in Ukraine escalated, we saw investors turning to gold," he wrote. 

He added that bitcoin still "finds its place somewhere between a speculative technological asset and a digitized hard currency."

Under these circumstances, the good old dollar is also a better investment than bitcoin and other cryptocurrencies in these volatile times. 

The US dollar index has risen about 6% this year.

All this shows that bitcoin is yet to be a substitute for Gold or coins supported by the US government in times of crisis for many investors.

Related article about Gold.

UNBELIEVABLE! THEY CREATED AN ETF THAT COMBINES BITCOIN AND GOLD.

Billy Kasis, blog writer