Central Banks Buy Gold at Record Levels: How Does Bitcoin Compare?

Alright, folks, let's dive into the latest developments in the world of gold and Bitcoin. Central banks have been buying gold at record levels, but how does Bitcoin compare? So, buckle up and let's get into it.

Central Banks Buy Gold in Record Amounts

In the first six months of 2024, central banks have purchased gold in record quantities. According to a report by Kobeissi, central banks have bought 483 tons of gold in the first half of 2024, a record high according to capital market analysts.

This amount is five percent higher than in the first half of 2023, when central banks purchased 460 tons of gold.

The central banks of Poland, India, and Turkey are among the largest buyers, the report states.

For financial analyst Spencer Hakimian, this development is no surprise: “The East (China, India, Russia, Saudi Arabia, etc.) no longer trusts the possession of Western currency reserves. […] Gold is the only neutral and non-volatile reserve medium.”

At the time of writing, gold is trading at $2,500 and has risen by 21 percent since the beginning of the year. For Peter Schiff, this is reason enough to declare: “The momentum has turned.” Gold has outperformed Bitcoin in the last six months.

However, when comparing the price performance of gold and Bitcoin since the beginning of 2024, it becomes clear: With a gain of almost 40 percent, BTC has still performed twice as well as gold.

Even in the long term, gold cannot keep up with Bitcoin. On an annual basis, BTC has delivered a return of 130 percent to its investors, while gold has returned 30 percent.

Whether central banks will recognize this potential in the future remains to be seen. At least Harvard University advises these institutions to buy Bitcoin.

The Bottom Line

So, there you have it, folks. Central banks have been buying gold at record levels, but Bitcoin continues to outperform the precious metal. Whether you're a seasoned crypto investor or just starting out, it's important to stay informed and stay vigilant.

Crypto is a wild and exciting world, but it's also a complex one. So, always do your own research, consult with professionals, and remember that what goes up can also come crashing down.

Disclaimer

Alright, folks, before we wrap up, it's time for the obligatory disclaimer. This article is for entertainment and educational purposes only. It's not financial advice, and I'm not your financial advisor. Always do your own research and consult with a professional before making any investment decisions.

Crypto is a wild and unpredictable beast, and what goes up can just as easily come crashing back down. So, be smart, be cautious, and most importantly, have fun out there. After all, isn't that what life's all about?

Until next time, stay curious, stay informed, and keep your eyes on the prize. The world of finance is waiting, and it's a wild ride. So, buckle up and let's enjoy the journey together.

Happy investing, folks!

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