Gold loses luster as an asset

Just a few months ago, when the financial markets had fallen sharply and almost immediately began to recover all the losses suffered, the attention of investors and the main news media was focused on the performance of the precious metal par excellence, GOLD.

However, little by little this attention was dispersed. Currently, given the prominence that bitcoin has begun to have, it would seem that the focus of attention has shifted away from an asset that undoubtedly has great importance in economic and financial terms worldwide.

The topic of cryptocurrencies has captured everyone's attention. On the one hand, small investors with the idea that they could have found the easy and fast way to grow their wealth exponentially. On the other hand, globally recognized investment firms that have started to accept Bitcoin as an additional asset to have in their investment portfolios. This is due to the possibility that it has protective characteristics and/or high growth potential. Similar to the famous FOMO (fear of being left out) that is increasingly present.

We believe that currently, comparing them would not be the right thing to do. The level of volatility that one has with respect to the other is very different. Gold is currently fully accepted; on the other hand, Bitcoin, despite its increasing acceptance, still has a very high level of financial and reputational risk. 

Having said all this, what is the current gold situation?

As we can see in the chart, the price of the metal had an important rally in the last 15 days of July, in which it had an increase of 15%. Since that date we see that the price of gold has shown an important consolidation between USD 1,850 and USD 1,950.