When markets shake and fears rise, investors seek a “safe haven”, an asset that protects their money from volatility and loss.

Gold shines with its historical stability over centuries, while cryptocurrencies impose themselves as a new and bold option.

So, which deserves this trust: the yellow metal or cryptocurrencies?

Gold Maintains Its Historical Position

Despite digital advancements, gold still holds its place as a safe haven.

A study published in 2010 in the Financial Review journal confirmed that gold remains the top choice during crises due to its relative stability and immunity to market fluctuations.

During the COVID-19 pandemic in 2020, another study published in Research in International Business and Finance showed that gold clearly outperformed cryptocurrencies in retaining value, boosting investor confidence in tough times.

Cryptocurrencies… A Risky Future?

Despite the significant rise of cryptocurrencies, especially Bitcoin, several studies questioned their ability to act as a safe haven. A 2016 study published in Finance Research Letters indicated that cryptocurrencies are highly volatile, making them less reliable compared to gold.

Moreover, a global market analysis published in 2019 in The North American Journal of Economics and Finance explained that Bitcoin behaves more like a “speculative asset” influenced by news and speculation, lacking enough stability traits to be a true alternative to gold.

Diversifying the Portfolio Is the Solution

Studies recommend not excluding cryptocurrencies, but gold remains the most important tool to reduce risks during crises.

What about you? Where do you prefer to put your money: in stable gold or volatile cryptocurrencies?