Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

How Gold Outshone Bitcoin In October

Oct. 31, 2018

When investing in alternative assets gold remains the king.

The yellow metal performed far better than the world's best-known cryptocurrency, Bitcoin, during October's market volatility.

When investors buy alternative assets, they typically look for two things.

Safe-haven?

First, they want to know how the asset will perform as a safe-haven asset during times of market volatility.

It should be clear that over the last month we have seen plenty of market volatility. Stocks have made some wild intra-day swings, starting the day substantially up and then ending lower than the previous close.

In addition, the S&P 500 index, which gets tracked by the SPDR S&P 500 exchange-traded fund, lost more than 8%, so far in October.

While stocks fell, gold prices gained. Prices for the yellow metal started the month at $1,189 a troy ounce and were recently trading at $1,220, according to data from Bloomberg.

Meanwhile, Bitcoin, which has been much heralded as a new alternative asset, lost value. The price of one Bitcoin started the month fetching $6,573 and was recently trading for $6,271. That's a drop of more than 4% so far in October.

Click here to continue reading...