Gold precious metals, which have served as a financial anchor for humans for five thousand years, have performed incredible times this year. With prices per ounce up 25%, the remaining profitability is much higher than that of other traditional assets such as stocks.
For Russ Koesterich, a certified financial analyst, Juris Doctor, General Director and Portfolio Manager at the BlackRock Global Assignment Fund, it’s time to retain precious metals as a long-term value reserve.
Koesterich believes it would be convenient for the rest of the year to have a “small position in gold” as a diversifying device for the investment portfolio. This has been since Metals, it’s not effective short-term coverage, but “it’s an effective value reserve.”.
As he sees, this feature of this gold is particularly important today as investors are battling public debt at both record levels and “the heartbreaking changes in international trade” due to US tariffs. This adds important pressure to the US dollar.
The greater uncertainty equals greater volatility
Koesterich shows that the volatility of variable income assets, such as stocks, has influenced investors, was filmed this year, as usual in an age of global political uncertainty.
That volatility drives money. It will surpass the action and its main indexas has been done since January, you can see it in the following graph.
In fact, previous analysis of Capriole investments collected by Cryptonoticias predicts that, as we have done in the past, this volatility of this variable income, could result in a good performance of precious metal rises on stocks from 150% to 650%.
This adds a huge US public debt, which has attracted the attention of investors. Although it is not a unique theme in North American countries, as other countries such as Italy and Japan face similar situations, Public debt exceeding GDP.
The following graph shows the rise in public debt in the US and other countries over more than 30 years. It reflects total debt as a percentage of GDP. Similarly, the dotted line shows predictions from the global economy perspective implemented by the International Monetary Fund (IMF).
Koesterich says the rise in the US government’s public debt is the reason for special concern. And depending on the size of the country’s debt market and the situation of the dollar reserve currency, the gold price is They historically had a strong relationship with the US public debt level.
In that sense, gold usually continues as the relationship between debt and US GDP grows. And even more importantly, the relationship between money and government debt has not been linear in the past. That is, gold price revenue They tended to accelerate as public debt approached GDP. In other words, debt is currently over 100% of GDP.
The entire previous context suggests that gold can withstand attacks in the short term. However, Las Course Asteric He claims that precious metals are “long-term insurance contracts.”
“The yellow metal already has a great race, but looking beyond that, the biggest political uncertainty and record-breaking debt suggest that something is hidden in its portfolio,” he said.
Bitcoin is similar to gold in many ways
All Koesterich’s gold analysis can be easily applied to Bitcoin (BTC), the world’s largest digital asset. This currency is similar to gold. Especially what it must do as a long-term value reserve.
Bitcoin is an asset with rare offers. In the case of BTC, the system is limited to 21 million units. This protects you from inflation and devaluation of Fear currency. This feature, like the role gold plays, makes it an attractive shelter in an age of economic and political uncertainty.
Furthermore, Bitcoin shows significant price resilience and significant growth over the period of volatility. Often it exceeds traditional assets such as actionsLike this year’s gold.
For example, in 2025, Bitcoin has experienced a significant increase in its valueas seen in this graph, it is about 15% to 18%.
This is driven by increased institutional adoption as digital coverage of inflation and macroeconomic instability, as reported by Cryptooticia, and the recognition of BTC.
Furthermore, along with rising public debt in the US and other countries and tensions in international trade, Strengthen appeals as an alternative asset It does not rely on a centralized financial system.
But like precious metals, Bitcoin volatility can be a challenge in the short term, but it could be a long-term preparation It is becoming increasingly recognised.
In this context, according to Koesterich’s argument, changing “Gold” to “Bitcoin” can be argued that Bitcoin’s small position effectively complements a diversification strategy that serves as an insurance contract for economic uncertainty and increased levels of public debt.
