Goldman Sachs is predicting a big jump for gold prices. They believe the price of gold could reach a whopping $4,000 per ounce by mid-2026. That’s a significant increase from the current price of around $3,310.
Gold vs. Bitcoin: A Hedge Against Inflation?
Daan Struyven, a top commodities researcher at Goldman Sachs, highlighted the limited supply of both gold and Bitcoin as a key attraction for investors worried about inflation. While Bitcoin has seen higher returns than gold recently, it’s also much more volatile.
Gold: The Better Safe Haven?
Struyven argues that gold is a better hedge against stock market downturns than Bitcoin. He points out that both Bitcoin and stocks tend to perform well when the market is doing well. However, Bitcoin’s strong correlation with tech stocks makes it less reliable as a safe haven when the market takes a dive. Gold, on the other hand, offers a more stable alternative.
Bitcoin’s Recent Performance
At the time of writing, Bitcoin was trading at around $109,078, having recently hit a new all-time high. Despite its recent gains, its volatility makes it a riskier investment compared to the relative stability of gold, according to Goldman Sachs.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always do your own research before investing.
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