Goldman Sachs is firmly pro-gold, saying that the precious metal will outperform Bitcoin long term. The bank highlighted gold’s role as a portfolio diversifier and described it as “more useful” that crypto currency for investors.
Analysts pointed out gold’s traditional role as a portfolio diversifier, compared with Bitcoin’s risk on, volatile status. “Gold may benefit from structurally higher macro volatility and a need to diversify equity exposure,” they said. “Tighter liquidity should be a smaller drag on gold, which is more exposed to real demand drivers.” The analysts say central bank demand, physical demand for gold and ongoing safe-haven demand will continue to offer strong support to the precious metal. The bank describes Bitcoin as “a solution looking for a problem” in contrast, giving gold the long term edge.