Have you heard the latest news? JPMorgan analysts have made a bold prediction that Bitcoin is set to outshine gold in the second half of 2025. This forecast is based on the increasing corporate interest in Bitcoin and the growing support it's receiving from various U.S. states.
The Battle of Assets: Gold vs. Bitcoin
The Rise of Bitcoin
Imagine a tug of war between two heavyweight champions: gold and Bitcoin. For a while, gold seemed to have the upper hand, but recently, Bitcoin has been pulling its weight. Since mid-April, gold has dipped by nearly 8%, while Bitcoin has soared by 18%. This shift is reflected in investor behavior, with funds flowing out of gold ETFs and into Bitcoin.
The Momentum Behind Bitcoin
What's fuelling Bitcoin's rise? It's not just about gold losing its shine. JPMorgan points to specific factors within the crypto realm. Companies like Strategy and Metaplanet are ramping up their Bitcoin holdings, with Strategy aiming to secure $84 billion for Bitcoin purchases by 2027. The recent success of Metaplanet, with a significant increase in Bitcoin holdings and market value, further solidifies Bitcoin's momentum.
The Crypto-Friendly States
American States Embrace Bitcoin
Picture a domino effect across the United States: New Hampshire allowing up to 5% of its reserves to be in Bitcoin, and Arizona launching a Bitcoin reserve while promising no tax hikes this year. This growing acceptance of Bitcoin by various states could serve as a long-term positive driver for its value.
Exciting times lie ahead for Bitcoin as it gears up to potentially surpass gold in the latter half of 2025. The stage is set for crypto enthusiasts, investors, and states alike to ride this wave of digital transformation. Stay tuned for more updates and insights on this fascinating journey!
Frequently Asked Questions
Are You Ready to Invest in Gold?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. Consider investing in both.
Gold offers potential returns and is therefore a safe investment. This makes it a worthwhile choice for retirees.
While most investments offer fixed rates of return, gold tends to fluctuate. As a result, its value changes over time.
This does not mean you shouldn’t invest in gold. It just means that you need to factor in fluctuations to your overall portfolio.
Another benefit to gold? It's a tangible asset. Gold can be stored more easily than stocks and bonds. It can also be carried.
Your gold will always be accessible as long you keep it in a safe place. Physical gold is not subject to storage fees.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
It's also a good idea to have a portion your savings invested in something which isn't losing value. When the stock market drops, gold usually rises instead.
Investing in gold has another advantage: you can sell it anytime you want. You can also liquidate your gold position at any time you need cash, just like stocks. It doesn't matter if you are retiring.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
You shouldn't buy too little at once. Start with just a few drops. Continue adding more as necessary.
Keep in mind that the goal is not to quickly become wealthy. It is to create enough wealth that you no longer have to depend on Social Security.
Gold may not be the most attractive investment, but it could be a great complement to any retirement strategy.
What is the Performance of Gold as an Investment?
Supply and demand determine the gold price. Interest rates also have an impact on the price of gold.
Gold prices are volatile due to their limited supply. Additionally, physical gold can be volatile because it must be stored somewhere.
How much of your portfolio should be in precious metals?
Before we can answer this question, it is important to understand what precious metals actually are. Precious metals refer to elements with a very high value relative other commodities. They are therefore very attractive for investment and trading. Gold is currently the most widely traded precious metal.
There are however many other types, including silver, and platinum. While gold's price fluctuates during economic turmoil, it tends to remain relatively stable. It is also unaffected significantly by inflation and Deflation.
In general, all precious metals have a tendency to go up with the market. That said, they do not always move in lockstep with each other. The price of gold tends to rise when the economy is not doing well, but the prices of the other precious metals tends downwards. This is because investors expect lower rates of interest, which makes bonds less attractive investments.
The opposite effect happens when the economy is strong. Investors choose safe assets such Treasury Bonds over precious metals. Since these are scarce, they become more expensive and decrease in value.
Therefore, to maximize profits from investing in precious metals, you must diversify across multiple precious metals. You should also diversify because precious metal prices can fluctuate and it is better to invest in multiple types of precious metals than in one.
Statistics
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
External Links
investopedia.com
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear in 1990 – WSJ
- How do you keep your IRA Gold at Home? It's not legal – WSJ
cftc.gov
law.cornell.edu
- 7 U.S. Code SS7 – Designation of boards for trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
How To
Investing In Gold vs. Investing In Stocks
Investing in gold as an investment vehicle might seem like a very risky proposition these days. This is because many people believe gold is no longer financially profitable. This belief stems from the fact that most people see gold prices being driven down by the global economy. They fear that investing in gold will result in a loss of money. In reality, however there are still many significant benefits to gold investing. Below we'll look at some of them.
The oldest form of currency known to mankind is gold. There are records of its use going back thousands of years. People around the world have used it as a store of value. It continues to be used in South Africa, as a way of paying their citizens.
The first point to consider when deciding whether or not you should invest in gold is what price you want to pay per gram. If you're interested in buying gold bullion, it is crucial that you decide how much per gram. You could contact a local jeweler to find out what their current market rate is.
Noting that gold prices have fallen in recent years, it is worth noting that the cost to produce gold has gone up. So, although gold prices have declined in recent years, the cost of producing it has not changed.
You should also consider the amount of your intended purchase when considering whether you should buy or not. If you intend to only purchase enough gold to cover your wedding rings it may be a smart decision to not buy any gold. If you plan to do so as long-term investments, it is worth looking into. You can profit if you sell your gold at a higher price than you bought it.
We hope our article has given you a better understanding of gold as an investment tool. We strongly recommend that you research all available options before making any decisions. Only then can informed decisions be made.
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By: Oscar Zarraga Perez
Title: Why JPMorgan Predicts Bitcoin Will Surpass Gold in the Latter Half of 2025
Sourced From: bitcoinmagazine.com/news/jpmorgan-forecasts-bitcoin-to-outperform-gold-in-second-half-of-2025
Published Date: Thu, 15 May 2025 15:50:48 +0000
