Bitcoin (
BTC-USD
) and gold (
GC=F
) have both seen unprecedented price surges this week, reflecting a widespread strategy among investors to protect their assets from potentially devalued traditional currencies.
Even staunch gold advocates are acknowledging Bitcoin’s rising prominence as a form of “digital gold.”
Paul Karger, co-founder and managing partner at Twin Focus, stated to a leading financial publication on Wednesday that, “The Bitcoin market has grown too substantially to disregard. Those who dismissed Bitcoin over the past decade have consistently been proven wrong.”
As of Wednesday, Bitcoin’s value was approximately $124,000, a slight decrease from its record high of over $125,000 reached on Monday. The leading cryptocurrency has gained 31% since the beginning of the year.
CME – Delayed Quote
USD
124,670.00
+2,315.00
+(1.89%)
As of 14:08:42 GMT-4. Market open.
While still recommending a slightly larger allocation of 5% to gold, Karger suggests including a smaller Bitcoin holding in client portfolios, acknowledging that the leading cryptocurrency “has merit within a well-balanced investment strategy.”
Karger proposed adjustments to the fixed-income component of the traditional 60/40 portfolio, where 60% is typically allocated to stocks and 40% to bonds.
His recommendation involves shifting away from long-term bonds toward shorter-term debt instruments, real estate investments, digital currencies, gold, and diverse commodities, including copper and investments in AI infrastructure.
Gold has performed exceptionally well this year, trading at record highs, currently exceeding
$4,060 per ounce
. It is on track to achieve its most significant annual
gains in over forty years.
“Gold should definitely be part of your portfolio,” Karger stated. “It’s a fantastic store of value. Gold has essentially outlasted currencies for two millennia.”
Read more:
Thinking of buying gold? Here’s what investors should watch for.
For those who prefer owning tangible gold, he suggests gold coins instead of bars because the bars can be more difficult to resell. Security is essential for either format.
Gold futures have increased for nine out of the last ten sessions, marking new all-time highs for the tenth consecutive trading day. This impressive growth translates to nearly 55% gains year-to-date.
Investors’ flight to safe haven assets has sent gold up more than 50% this year. REUTERS/Angelika Warmuth
·
Reuters / Reuters
Ines Ferre is a senior business reporter. Follow her on X at
@ines_ferre
.
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