Gold Is Outperforming Bitcoin and the Stock Market in the Past 3 Months: What’s the Better Hedge?

Gold bars are stacked in the safe deposit boxes room of the Pro Aurum gold house in Munich, Germany, on Aug. 14, 2019. Michael Dalder/Reuters

In the past three months, investors have grown increasingly concerned about the negative potential impact of elevated inflation levels and rising interest rates in 2022. But while stock prices and cryptocurrency prices have lagged, gold has outshined them both.

Golden Performance

In the past three months, the SPDR S&P 500 ETF Trust is up just 1.1 percent, while the price of Bitcoin is down 32.6 percent. Meanwhile, the SPDR Gold Trust has quietly grinded higher by 3.9 percent during that three-month stretch as investors seek refuge from inflation.

“Despite the rise in rates and real yields, gold has held up relatively well YTD,” John Lynch, Chief Investment Officer for Comerica Wealth Management, said this week. “Miners [are] gathering momentum and ETF flows have been weak, so this merits watching if prices can test resistance around $1875.”

Bitcoin’s Perks

But despite gold’s relative strength as of late, many investors still see Bitcoin as the better longer-term inflation hedge. In fact, deVere Group’s Nigel Green recently said there are several reasons Bitcoin makes a better inflation hedge than gold.