Bitcoin (BTC) supporters continue to scoff at gold bug, while returns over the past 10 years turn negative.
On Tuesday, new data shows that XAU / USD hit 3.7% lower levels from the same day in 2011.
Gold disappoints on any timeframe
It has been a bad week for gold and its investors: a sharp fall on Monday consolidated the losses that characterized much of 2021.
Having started the year at $ 1,941, XAU / USD is currently at $ 1,729, posting a 10.9% loss.
While longer-term performance has saved gold from humiliation in the past, even a 10-year HODL strategy turns out to be a questionable investment this month. As of August 1, 2011, the precious metal was trading at $ 1,830, which is 5.8% higher than the current price.
Meanwhile, Bitcoin has vastly outperformed not just gold but any large commodity in terms of dollar gains, and it shows no sign of a reversal to give gold a competitive edge.
“A single Bitcoin is now worth 21 ounces of gold. Poetic,” summed up last week the FTX trading platform.
Listed in BTC, gold appears even weaker on Tuesday at just 0.038 BTC per ounce. Its all-time low of 0.02746 BTC was hit in mid-April when BTC / USD hit an all-time high of $ 64,500.
In other words, 1 BTC now buys nearly 600 grams of gold.
“It’s not digital gold!”
Perhaps predictably, members of the gold industry were among the few figures to publicly defend the precious metal, including Schiff Gold CEO Peter Schiff.
Related: Strong correction for gold, but Bitcoin holds its own levels
Attributing gold’s performance to macroeconomic factors, the notorious Bitcoin skeptic said that despite all its success, Bitcoin can never match it.
“Bitcoin’s rise as gold falls does not mean it has replaced it as a hedge from inflation,” he replied this week.
“Gold is falling because traders mistakenly think the Fed will be able to fend off inflation by tapering QE and raising interest rates. Bitcoin doesn’t move like gold because it’s not digital gold! “
His perspective is at odds with a growing number of non-crypto figures this year, including well-known investor Ray Dalio and Jerome Powell, chairman of the US Federal Reserve. The former, however, recently made it clear that he would still choose gold instead of BTC.