Longtime readers know I'm no gold fan. |
First, gold pays no yield. So, if you buy gold instead of bonds, for instance, you forego any interest income. |
Second, gold can lose value for long stretches. From 1980 to 1999, it fell roughly 80% in real terms… And it didn't reclaim a new inflation-adjusted high until April 2025. |
Over that same period, the stock market has risen as much as 18,893%, including dividends. That's 45 years of gold underperformance. |
And yet, gold's price just smoked everybody last year, up 65%. That type of outperformance demands that you examine what is behind such an outlandish move. |
Gold Is Becoming Money Again |
Since I first came across bitcoin a decade ago, I've told anyone who would listen that bitcoin is infinitely better gold. |
Bitcoin is scarcer than gold, easier to move, and faster to settle. You can send it anywhere in the world in minutes – not weeks like gold. |
And unlike gold or fiat currency, bitcoin can't be debased. Its supply is permanently capped by immutable code. No central bank can print more out of thin air. No new discovery of a mine can suddenly increase supply. |
That's what makes bitcoin the first truly fixed-supply monetary asset in history. |
Over the past decade, the world has caught on to this idea… |
Bitcoin has been up as much as 29,272% since I recommended it in April 2016 at around $400-and-change. That crushes gold's 265% return over the same span. |
But last year, gold flipped the script. It soared 65%, while the grandaddy of crypto dropped 7%. |
Now, over the long term, I still believe bitcoin will outperform gold. But I was wrong about one thing: I thought bitcoin would get monetized before gold got re-monetized. |
When an asset is monetized, people stop speculating on it and start holding it over the long term to protect their wealth. For centuries, gold performed this role until the U.S. dollar replaced it following World War II. |
Since then, the dollar has been the base layer of the global monetary system. That's now changing because the world is turning away from the greenback. |
I'll go into what this de-dollarization trend means in future essays. But know this… Just as I predicted, bitcoin began gaining adoption as a reserve asset last year. |
Governments – including the U.S. government – began building strategic bitcoin reserves… and corporations started adding bitcoin to their balance sheets. |
Yet, despite what I consider bitcoin's superior qualities to gold… gold's performance outpaced bitcoin as central banks continued to load up on the precious metal. |
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For most of the 2010s, central banks were steady but not aggressive gold buyers. Then, starting in 2022, something changed. Purchases more than doubled – and they've stayed elevated ever since. |
That's the moment gold stopped being "just another asset" and started acting like money again. |
Now, this doesn't change my long-term thesis for bitcoin. I'll show you why in a moment. But first, you have to understand what's happening with gold… and why it surged above bitcoin last year. |
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What's Pushing Gold Higher |
On January 11, Federal Reserve Chair Jerome Powell revealed that the Justice Department had served him with grand jury subpoenas. These raised the possibility of criminal charges tied to his testimony about renovations to the Fed's headquarters. |
Look, I don't know what's happening behind the scenes, so I won't speculate on the case itself. |
Long-time readers know I never get political. My work is for everyone. No matter your beliefs, we all want the same thing – a brighter financial future for ourselves and our families. |
But I can tell you what this Powell case means for your money. And it's unprecedented. |
It's no secret that President Trump wants Powell out as Fed chair. And even if Powell isn't criminally charged, the clock is already ticking on his tenure. |
Powell's term as Fed chair ends in May 2026, clearing the path for a new chair who will be far more willing to aggressively cut rates. |
The prospect of President Trump installing a more dovish chair has reignited concerns that the U.S. could be headed toward an inflationary spiral. And when central banks slash rates, gold tends to rise. That's because investors turn to it as an inflation hedge. |
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Friends, gold getting re-monetized wasn't on my bingo card for 2025. So, what does it mean for bitcoin? |
It tells me the world isn't ready to park its money in bitcoin – yet. For now, gold has the edge because of its millennia-long history as a store of wealth. |
Just think about it… |
When you look at the average age of the men and women running the world's major central banks, something important clicks into place. |
Most of them are in their early 60s. They were shaped by a world where gold was the ultimate crisis asset. Every currency shock, every market crash, every geopolitical conflict they studied ended the same way – gold prices shot higher. |
So when today's system starts to wobble, they don't reach for something new. They reach for what they know. |
That explains why, in 2025, gold surged 65% while bitcoin fell 7%. |
But that doesn't change my long-term view on bitcoin. Because historically, when gold runs… bitcoin eventually runs much higher. |
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Gold Is a Reliable Indicator for Bitcoin |
When things shift in the economy, gold always moves first. Then, bitcoin follows with the life-changing gains. |
That pattern has never failed me since I first recommended bitcoin in April 2016. For example, here's what I wrote on May 5, 2020, in the midst of pandemic chaos: |
Investors are flocking to both gold and bitcoin to protect the value of their money from central banks' reckless currency inflation. The Federal Reserve recently announced its own $2.3 trillion money-printing program. That's on top of its pledge to buy an unlimited amount of assets that some analysts say could add another $5 trillion to the Fed's balance sheet. |
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What does that mean? Here's how I put it back then… |
This unprecedented money printing will dilute money so much that – 10 years from now – the purchasing power of the U.S. dollar could be cut in half. And that is why I think everyone should own some gold and bitcoin right now. Of the two, I think bitcoin will have a bigger move higher. |
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So far, the trend has played out exactly as I said it would. |
When I wrote that article in May 2020, bitcoin was trading at $8,660. Since then, it's traded as high as $126,000. |
That's a 1,455% gain – enough to turn every $1,000 into $15,550. Meanwhile, gold is up as much as 157% over that same span. |
Now, gold had a better run than bitcoin last year, as central banks remonetized it as an asset. |
But remember: When the market smells fear, gold starts running first. Eventually, bitcoin steals the spotlight – and its gains are explosive: |
In 2020, gold rallied 43% after the Covid-19 crash. Bitcoin followed, soaring 543%. In 2022, gold bottomed as inflation peaked – then ran higher. Bitcoin followed, delivering 4x gold's returns. In 2024, gold sniffed out the government's spiraling debt load. Bitcoin followed and crushed gold's gains 83% to 35%.
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Based on the examples above, when bitcoin catches up with gold, the average gain is 313%. |
So far this year, bitcoin is up 9% and gold is up 6.5%. I don't have a crystal ball, so I can't say how that plays out over the full year. So be prepared for volatility. |
Friends, we're living in an unprecedented time. We're seeing the world de-dollarize. |
Countries are abandoning the U.S. dollar as their primary store of value and settlement currency… and moving their reserves into alternatives like gold. Eventually, I believe this de-dollarization trend will boost bitcoin because of its superior qualities. |
For now, central banks are turning to gold because it's familiar. Once they realize bitcoin is built for a digital world, it'll push prices much higher from here. |
Let the Game Come to You! |
Big T |
P.S. I have another important message I want to share with you today. It's even bigger than what's going on in the gold market… |
Investors around the world are making a huge mistake. They're buying wildly overvalued AI companies in the hopes of making a stock market fortune. But they're buying the wrong stocks. |
Based on my research, the next round of AI winners will come from one of the most under-owned corners of the market – blue-chip stocks using AI without having to pay for AI's buildout. |
The market is already awakening to this warning. Popular "pure play" AI stocks like AMD, Palantir, and Broadcom are showing red flags. They're down an average of 14%. |
Meanwhile, a handful of AI Adopters I've carefully selected – companies using the technology to increase efficiency, cut costs, and expand margins – are up an average of 2%. |
Before you put another dollar into Palantir, Broadcom, or any other "name brand" AI stock, get the full details on what you should be buying instead. |
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