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Gold Is Flashing Bitcoin’s Most Reliable Signal
Every time gold does this, bitcoin explodes 300%+ within months.
Before You Think About Trading Bitcoin for Gold… Read This
Back in March 2021, I shocked the investment world.
I told my readers to do something nobody on Wall Street or the newsletter industry dared say out loud: “Cut your gold allocation from 10% down to 1%... and raise your bitcoin allocation from 1% up to 10%.”
You can imagine the outrage.
People called me reckless. They said I was putting retirees’ savings at risk. But I stuck to my research. And time proved me right.
From March 2021 through January 2025, bitcoin doubled the return of gold. It rose 106% while gold rose just 51%.
It was absolutely the right move to swap gold for bitcoin. But what about now?
Since the start of 2025, gold has been beating the pants off bitcoin. It’s up 66% year-to-date while bitcoin is only up 19%.
Gold buyers have every right to cheer.
While bitcoin buyers have to deal with volatility… Gold buyers have to deal with long stretches of underperformance.
After peaking at about $1,800 in 2011, gold buyers had to wait until July 2020 to get back to even. For those who waited the 10 years for the gains you’re seeing today, congratulations. It’s been a long road, and you deserve the win.
We have to ask ourselves, though, was gold the best asset to own from 2011-25? And is it the best asset to own now to play the debasement trade?
I don’t think it is.
If you were unfortunate enough to have bought gold at the peak in 2011, and assuming you still hold it, your return has been just 125%. Over that same period, the S&P 500 rose 454%, the Nasdaq soared 791%, and bitcoin rocketed 1,031,718%.
Even if we assume that you bought the S&P 500, Nasdaq, and BTC at their peak prices during this period… The longest you would’ve had to wait to get back to even would have been two years for the S&P 500 and the Nasdaq, and 34 months for BTC.
So while I’m genuinely happy for gold investors, I’d still urge you to follow my suggested reallocation to bitcoin.
Because if you think the run is over for bitcoin… Or you’re thinking of selling your bitcoin to buy gold… It will be the biggest financial mistake you make in your life.
Gold’s Rally Is the Smoke – Bitcoin’s the Fire