Those who have invested in gold or bitcoin have probably not regretted it. On Wednesday, the price of gold exceeded $ 4,000 per ounce (a unit of mass measurement in precious metals equivalent to 31.1 grams), recording record prices. Already in March it had exceeded $ 3,000. As for Bitcoin, the most well -known internationally cryptocurrencies, a few days ago exceeded the $ 125,000 threshold for the first time to retreat.

Particularly impressive is the upward course of gold. The “king of metals” has recorded this year the most impressive “race” since the 1970s, as it has increased over 50%since January 1st. In relation to 2018 levels, the increase is 300%. Bitcoin may have had some changes during the year, but overall its value has increased more than 30% since January.

Traditional investment “refuge”

Traditionally gold is considered a safe haven for investors – as a rule as a rule. A key factor that triggers the latest “race” in the markets is obvious uncertainty. And this is not only because of the wars in Ukraine and Gaza. The uncertainty is also fueled by concerns about President Donald Trump’s duties and the viability of the disadvantaged US debt, as well as doubts about whether the dollar, which has been moving down in recent months, can defend its role as a more powerful role. The famous Shutdown in the US, that is, the temporary shutdown of the federal government due to incomplete funding, certainly does not improve investor expectations.

Another parameter of uncertainty is the downward course of the Japanese currency in currency markets in the wake of political instability in the “country of the rising sun”. Announcements for the presidency of the ruling Liberal Party (LDP) by Sanae Takaichi, most likely the first female prime minister in Japan’s history, probably survived the stock markets on Monday. However, the yen continues its declining course. “This means an investment shelter less and gold benefits from this trend,” Tim Guterher, a KCM Trade analyst, tells Reuters.

“ETF factor”

But there are other factors that favor the upward course of gold. Many analysts record a particularly increased demand for negotiable mutual funds (ETF) investing in the gold market. This means that demand multiplies, as investors in ETF are added to central banks, traditional gold customers. Recent data from the US Commodity Futures Trading Commission (CFTC) show that capital administrators have already invested $ 73 billion in gold.

Demand is not expected to retreat soon. On the contrary: In its recent note to investors, HSBC Bank estimates that the “king of metal” “race” will continue in 2026, with institutional investors seeing gold as a major factor in their portfolios. At the same wavelength, the World Gold Council provides in its annual report that most central banks are expected to increase their gold reserves in the next 12 months.

In favor of Bitcoin Trump

As for Bitcoin, the explanation of the upward course seems simple, as the cryptocurrency benefits from US President Donald Trump’s clear political support. In addition, there is evidence that some institutional investors are starting to see Bitcoin as an alternative to traditional placements – pending interest rates by the US Central Bank, which will force investors to incite greater risks.

But the US State’s Shutdown also has a positive effect on the cryptocurrency, estimates Jeffrey Cereic, head of Standard Bank’s Digital Assets department. He even estimates that Bitcoin will soon exceed $ 135,000.

Curated by: Yiannis Papadimitriou