Gold Outperforms Bitcoin and Stock Market in Last 3 Months: What’s the Best Hedge? – SPDR Gold Trust (GLD)

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Over the past three months, investors have become increasingly concerned about the potential negative impact of high inflation levels and rising interest rates in 2022. But as share prices and prices cryptocurrencies have lagged, gold has eclipsed them both.

Golden Performance: Over the past three months, the SPDR S&P 500 ETF Trust (NYSE:SPY) has risen just 1.1%, while the price of Bitcoin (CRYPTO:BTC) has fallen 32.6% . Meanwhile, SPDR Gold Trust (NYSE:GLD) has quietly climbed 3.9% over the three-month period as investors seek refuge from inflation.

“Despite rising rates and real yields, gold has held up relatively well year-to-date,” John Lynch, chief investment officer of Comerica Wealth Management, said this week. “Minors [are] momentum is picking up and ETF flows have been weak, so it’s worth watching if prices can test resistance around $1875.”

By midday Thursday, gold was trading at around $1,839.74 an ounce.

Related Link: ‘Risks Are Rising’: Experts React to 7% CPI Inflation, Highest Since 1982

Advantages of Bitcoin: But despite the relative strength of gold lately, many investors still view Bitcoin as the best long-term inflation hedge. In fact, deVere Group’s Nigel Green recently stated that there are several reasons Bitcoin is a better inflation hedge than gold.

“Unlike gold, [Bitcoin] is a fixed and easily divisible and transportable unit of account. Gold is not readily divisible immediately, and there are potential purity and verification issues. While Bitcoin is easily traced on blockchain technology and this is going to be a huge advantage, especially in cross-border transactions,” Green wrote.

Benzinga’s View: Bitcoin’s biggest advantage as an inflation hedge is its long-term performance, gaining more than 1,000% in the past three years alone. However, for investors looking for a safe haven from short-term market volatility, investing in gold can be far less stressful than buying the extremely volatile Bitcoin.

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