In a compelling analysis, market veteran Ed Yardeni has asserted that gold is emerging as a more reliable safe haven compared to bitcoin. In his latest market note, Yardeni, the head of Yardeni Research, highlighted the prevailing conditions under which investors are increasingly leaning towards gold amid ongoing geopolitical uncertainty. As he succinctly put it, “Gold Is The New Bitcoin,” emphasizing gold’s historical role as a hedge against risk compared to bitcoin’s relatively recent emergence.
Yardeni notes that, while bitcoin has often been dubbed “digital gold,” he proposes a different perspective: gold should be considered “physical bitcoin.” He argues that as risk-averse investors seek shelter from geopolitical tensions that could hinder stock market gains, gold stands out with its long-standing reputation for stability. In contrast, bitcoin, with its short history, has largely acted as a speculative asset.
The performance metrics further underscore gold’s dominance in the current market climate. This year, gold prices have surged by an impressive 60%, far outpacing bitcoin, which has only managed a 20% increase. To frame this in context, while bitcoin’s performance has closely mirrored that of the Nasdaq Composite index—giving rise to concerns as tech stocks face volatility—gold has demonstrated remarkable strength and resilience.
Recent data illustrates this trend: gold has risen over 13% in the past month alone, while bitcoin has experienced a 3% decline. Within the last week, gold’s value climbed nearly 4%, contrasting sharply with bitcoin’s drop of 9%, as well as a nearly 1% decline in the Nasdaq.
Looking ahead, Yardeni has set an ambitious price target for gold, suggesting it could reach $4,000 by the end of 2025, a level it has already surpassed with prices recently exceeding $4,200. Furthermore, he anticipates a possible rise to $5,000 by 2026 and posits that gold could potentially soar to $10,000 by the decade’s conclusion.
Conversely, bitcoin appears to be facing significant headwinds, largely attributed to liquidity challenges in the crypto market. Yardeni pointed out that approximately $19 billion in liquidations from futures and leveraged positions has contributed to bitcoin’s recent downturn. He elaborated that some trading platforms have implemented auto-deleveraging as a risk management tactic, leading to forced closures of even profitable positions to ensure broader exchange stability.
In stark contrast, gold responded positively last Friday when geopolitical tensions escalated, particularly following President Donald Trump’s announcement of potential 100% tariffs against China, further illustrating the metal’s appeal during moments of crisis.
“In this environment, investors are seeking refuge from escalating geopolitical risks,” Yardeni concluded, emphasizing that many are turning their attention not only to gold but also to silver as reliable alternatives in fraught times.
