Gold falls below the $1,700 benchmark

seekingalpha2021-03-30

Gold continues to drop in Tuesday's trading, falling below the $1,700 watermark -1.53%. Gold is down -11.72% YTD and -18.51% since early August of 2020.

Interestingly enough, bitcoin (BTC-USD), on the other hand, is +1.50% on the day and is +102.88% YTD. Some investors see the digital currency stealing market share from gold as investors have chosen the cryptocurrency over gold of late.

This inverse relationship between gold and bitcoin is not a first-time offense. Dating back to the fourth quarter of 2017, bitcoin ran up over 300.00% to its then all-time high of $19,458 back on December 18th. During that time, investors saw gold slide over -7.00% to the downside.

While it's possible that bitcoin may be stealing a portion of gold's market share, there are still other significant factors at play. The fact that the vaccine rollout continues to strengthen and virus impacts subside doesn't play well for the haven asset.

Below is a YTD chart of the performance on gold and bitcoin.

For investors looking to learn more about the value of gold, here are a few exchange traded funds worth examining: SPDR Gold Trust ETF(NYSEARCA:GLD), VanEck Vectors Gold Miners ETF(NYSEARCA:GDX), Aberdeen Standard Physical Gold Shares ETF(NYSEARCA:SGOL), and iShares Gold Trust ETF(NYSEARCA:IAU).

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • StanleyPoh
    2021-03-31
    StanleyPoh
    Bitcoin more valuable than gold?? 
  • RonnieSG
    2021-03-31
    RonnieSG
    Time to buy, about the lowest at this time but be optimistically cautious. Not for short term play
  • perfy
    2021-03-31
    perfy
    Hmmm
  • JFK
    2021-03-31
    JFK
    Gold is more safer and stable. 
  • torrentialT
    2021-03-31
    torrentialT
    it comes down to your conviction on cryptocurrencies. where do you see BTC or any of the other coins in 5 years?
    • RonnieSG: 
      Gold will still stand the test of time. Dangerous path for crypto, many many unknowns
  • Sotong
    2021-03-31
    Sotong
    like and comment
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