Everyone’s buying gold.
Just look around: El Salvador’s buying gold, BRIC countries are buying gold, central banks are buying gold, Aunt Mildred is buying gold; everyone’s buying gold. Should you?
El Salvador lit up Crypto Twitter this week with a decision to buy $50 million worth of gold, a move that had the Bitcoin crowd asking, “Since when does the world’s first Bitcoin country need shiny metals as a backup?”
El Salvador’s mega gold buy marks the country’s first gold purchase in 35 years, increasing its holdings by nearly a third, in an attempt to diversify its international reserves and enhance financial stability, especially given its heavy Bitcoin exposure.
By holding both Bitcoin and gold, El Salvador seeks to reassure international partners and signal prudent risk management to global institutions like the IMF.
“I shall strip the El Salvador flag from my name. Once a beacon of hope for a better future, it has become a shadow of disappointment.”
After President Bukele made Bitcoin legal tender, buying gold looks like hedging on a legacy safe haven, calling the nation’s Bitcoin conviction into question, and backtracking on the “digital gold” narrative.
“Central bankers expect to buy more gold.”
“Priced in gold, since hitting a high of about 37.2 ounces on Aug. 12, Bitcoin is down 18%, just 2% above official bear market territory…. How do you square this dismal performance with all the hype?”
“Gold just hit a new ATH of $3600, up almost 4x from its price in 2009. Bitcoin on the other hand is up 11,000,000x since 2009. Choose wisely”
Gold’s run is impressive, but Bitcoin’s performance since inception is the stuff of legends, far outstripping the returns of any shiny metal.
So, yes, everyone’s buying gold, banks, governments, even El Salvador, and certainly, Peter Schiff. But gold’s not the only refuge in a stormy world.
Bitcoin offers portability, privacy, and a price chart that’s more exponential than golden. With both assets hitting new highs, the choice is sharper and more controversial than ever: choose wisely.
