Gold vs Bitcoin: Who Outperformed in 2024?

The valuable metal has had an incredibly successful year, rising by approximately 27% and hitting a new all-time high just this past Friday.

Nonetheless, does this remarkable year-to-date performance imply that it has outperformed bitcoin, which is still away from its ATH?

Gold Leads 2024

Possibly influenced by the broader macroeconomic landscape, with several conflicts occurring, uncertainties surrounding various election cycles, buying activities from central banks in emerging markets, or other factors, the yellow metal has been at the forefront of price surges in 2024. It started the year at $2,065/oz, but quickly began to gain value against the US dollar.

The peak came yesterday when it soared to $2,622, setting a new record high, reflecting a 27% increase in value since January 1. Its price fluctuations against other currencies like the euro and the British pound have followed a similar trend.

But that’s not just the only news. Analysts forecast that its ascent is likely to continue. Goldman Sachs’ recent analysis suggests that gold could rise further, potentially reaching around $2,700 in the coming months, especially if the US implements new financial sanctions against other nations following the elections. The burden of US debt is another element that could elevate prices.

“Gold is the commodity our strategists expect to see the most significant short-term increase, and it’s also their preferred protection against geopolitical and financial uncertainties.” – quoted in Goldman’s memo.

Citing various analysts, CBS reported that gold is on track for a robust October due to the recent interest rate cut by the US Federal Reserve.

How Does Bitcoin Compare?

Bitcoin occupies a contentious position in the realm of global finance. Supporters view it as the natural successor to gold, given its comparable advantages, yet its functioning relies on digital mechanisms. Detractors argue that it is excessively volatile, and its relatively short existence suggests it belongs more to the category of riskier assets compared to gold, which has been around since prehistoric times. Or perhaps it occupies a space somewhere in between.

Regardless, BTC has also experienced a bullish trend this year. It was trading at around $42,200 on January 1 and ascended to a new all-time high of nearly $74,000 within three months.

Even though it lost significant value in the following months, dipping below $50,000 on several occasions, it currently trades at $63,000. This means that while it remains more than ten thousand dollars shy of its March ATH, its 2024 growth has realized an approximate 50% gain – nearly twice that of gold. So, despite the extraordinary year for the yellow metal, potentially its best yet, BTC has still outperformed it, at least for the time being.