Both gold and Bitcoin are seen by some investors as safe-haven assets. They share a key trait: limited supply. Because their quantities are finite, their value tends to rise when demand grows. This makes them popular hedges against a weakening U.S. dollar and other fiat currencies.
So far this year, the U.S. Dollar Index has dropped 8%. This reflects concerns about trade and fiscal policies under the Trump administration. Meanwhile, gold prices have jumped 24%, and Bitcoin has risen 18%.
How to Invest in Gold and Bitcoin Easily
Investors can buy physical gold from online dealers, and Bitcoin from cryptocurrency exchanges like Coinbase. However, owning gold directly involves challenges like costly storage and difficult sales. Bitcoin ownership also has hurdles, such as high transaction fees and secure storage needs.
Exchange-traded funds (ETFs) solve many of these problems. The SPDR Gold Shares ETF (NYSEMKT: GLD) tracks gold prices and is the largest gold fund by assets and trading volume. It charges a 0.4% annual fee, meaning $40 per $10,000 invested.
For Bitcoin, the iShares Bitcoin Trust (NASDAQ: IBIT) tracks Bitcoin’s price and is the largest spot Bitcoin ETF by assets and volume. It has a moderate expense ratio of 0.25%.
Analyst Insights: Bitcoin’s Potential vs. Gold’s Stability
JPMorgan analyst Nikolaos Panigirtzoglou expects Bitcoin to outperform gold in the latter half of 2025. Several factors support this view:
More companies are adding Bitcoin to their balance sheets. Strategy (formerly MicroStrategy) plans to invest $57 billion in Bitcoin by 2027.
States like Arizona and New Hampshire have created strategic Bitcoin reserves, with around two dozen others considering similar moves. This could boost demand from governments.
However, JPMorgan still sees gold as safer for cautious investors. Gold offers protection against geopolitical risks and dollar weakness. By contrast, crypto assets like Bitcoin can make portfolios more volatile, despite their low correlation with traditional investments.
What Investors Should Know
Trade tariffs and new tax and spending bills are expected to raise prices and slow economic growth. These factors have reduced demand for U.S. dollars, weakening the currency.
Investors worried about falling stock markets and a weaker dollar can hedge by owning gold or Bitcoin. Gold suits those who want less risk and volatility. Bitcoin may offer higher returns over time, especially if more companies and governments adopt it as a reserve asset.
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