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Perhaps the biggest year-to-date winner in the alternative asset market is Bitcoin. It’s generated little fanfare by the mainstream media, but since January 1st the cryptocurrency has gained +32.7% against the U.S. dollar. The jury’s still out, however, as to whether Bitcoin’s success is a momentary blip on the radar or suggestive of a long-term rebound.
Although the cryptocurrency market hasn’t remotely rebounded from the all-time high it eclipsed nearly two years ago, Bitcoin appears to have stabilized above the $20,000 USD mark. This is now the third consecutive month that the world’s largest cryptocurrency by market cap has traded above this mark.
This comes as welcome news for buy-and-hold investors who bought the token at the depths of the Crypto Winter and have been eyeing breakout points for the next rally.
A Lay of the Land
Given Bitcoin’s price potential and the reputational mending since the FTX scandal, the conditions are set for another crypto rally once the Fed returns to the easy-money policies we saw in 2020 and 2021.
At the same time, precious metals such as gold, silver, and platinum dipped into the red in March. Below, we’ve listed the 30-day price data for the three main metal groups next to the performance of the U.S. stock market:
- Gold: (-2.91%)
- Silver: (-9.92%)
- Platinum: (-3.85%)
- S&P 500 Index: (-3.19%)
While the precious metals market hasn’t fared well as of the first week of March, all three of the metal groups have seen significant growth over the past 6-month period, with silver leading the charge at +13.3%. The past month’s losses in the silver market as likely a result of a cooling off period following major double-digit growth since September.
Nevertheless, gold investors outperformed broad index stock investors through February, and investors investors fared as well as the S&P 500.
The Bankers Are Loading Up, Are You?
The slight depreciation in precious metals values clearly hasn’t stopped central banks from piling new bullion into their reserves. So far in 2023, central banks the world over have doubled down on their record-breaking gold buying campaign. In January alone, over 30 tons of the yellow metal were added to global central banks.
With a hawkish interest rate environment carrying forward into Q2 2023, a stagnating stock market, and a dip in the gold market, you’ve got to wonder—is there any reason not to buy gold this month? As inflation diminishes the value of our savings accounts, and the stock market is bled dry by expensive borrowing, now seems as good a time as ever to load up on gold at discount prices.
Want to take the next step in your precious metals investing journey? Check out our list of the top gold IRA companies—many of which are currently waiving first year fees for new sign-ups. Or maybe you’re more interested in loading up on Bitcoin while prices are low? If so, check out our reviews of the most trusted cryptocurrency IRA providers in America.
Liam Hunt, M.A., is a financial writer covering global markets, monetary policy, retirement savings, and millennial investing. His commentary and analysis have been featured in the New York Post, Reader's Digest, Fox Business, and Forbes.
