Bitcoin vs. Gold and Silver: Is BTC a Better Investment than Precious Metals? (Weekly Price Comparison)

We begin by looking at the current trading pattern of gold, silver, and Bitcoin alongside moving averages. A comparative analysis is then performed followed by a summary of our findings. Is Bitcoin a better investment tool than gold or silver? Let’s find out.

What’s Going on With Gold?

We begin our analysis by looking at gold. The price of Gold ($/OZ) is analyzed at one-day intervals from Aug 2018 to Apr 2019 alongside the 150- and 200-day moving averages in order to trace the current pattern.

On Mar 12, the 150-day MA crossed above the 200-day MA. This is known as a bullish cross and often indicates that a new uptrend may begin. Furthermore, the price is trading above both the moving averages. The highlighted part is the price of gold during the month of April, during which it has enjoyed slight decreases. The price is currently trading near $1280.

Don’t Forget Silver

The price of Silver ($/OZ) is analyzed at one-day intervals from Jan to Apr 2019 alongside the 150- and 200-day moving averages in order to trace the current pattern:

On Apr 15, the 150- and 200-day MAs made a bullish cross. However, unlike in the case of gold, the price is trading parallel to the moving averages. The highlighted part is the price of silver during the month of April, during which it has enjoyed slight decreases. The price is currently trading near $15.

A Look at Bitcoin

The price of BTC/USD is analyzed at one-day intervals from Oct 2018 to Apr 2019 alongside the 150- and 200-day moving averages in order to determine Bitcoin’s current trading pattern:

The price of Bitcoin was trading around $6400 on November 2018. After a sharp decrease, it reached lows of $3200 on Dec. This is a decrease of 50%. Subsequently, Bitcoin initiated an upward movement. In Feb 2019, the $4000 level was breached. By the end of March, price began to increase beyond $4000. On Apr 2, a massive spike caused Bitcoin to break out of its current trading pattern. Highs over $5000 were made the following day. The price is trading above both the 150- and 200-day moving averages. However, they have not yet made a bullish cross. The highlighted part is the price of BTC during the month of April, during which it has enjoyed massive increases.

Comparing April Performances

The price of BTC, Gold (yellow) and Silver (purple) is compared at six-hour intervals from Apr 1 to Apr 23. The right-hand scale presents the percentage increase/decrease of the three assets during the month of April. After the upward move at the beginning of April, the price of BTC kept increasing until Apr 10. During this 10-day period, it increased by 32%. A sharp decrease was followed by a gradual increase, and at the time of writing the price of BTC has increased by 31% compared to Apr 1. On the other hand, gold and silver have enjoyed very small fluctuations. They have ranged from +1% until Apr 10 to -2% on Apr 15-17. At the time of writing, the price of gold and silver has decreased by 1.46% and 1.06% respectively compared to Apr 1.

Summary

As evidenced by the charts above, we can come to the conclusions that the price of BTC has experienced significantly more volatility than that of gold or silver. It has however experienced gains of over 30% throughout the month of April while both silver and gold have seen losses. Nonetheless, Bitcoin is still trading below the $6400 levels. Gold, on the other hand, is trading above these levels despite its recent decline. Furthermore, the 150- and 200-period MAs for silver and gold have made a bullish cross whereas those for Bitcoin have not. In addition, the Federal Reserve has announced that it might keep its interest rate hike policy on hold through next year. Historically, this has caused investors to seek hard assets like gold. In turn, the price of gold typically increases. Digital assets like Bitcoin might also to prove a desirable investing mechanism if the interest rate hike policy is put on hold. Thus, while gold and silver may begin an upward trend, Bitcoin is currently performing better than both. Next week, we will assess the price of gold, silver, and Bitcoin to determine which has had the best April performance. At the current moment, Bitcoin is winning. Interested in 2019, 2020, and 5 year Bitcoin price predictions? Click on the green button below:

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile.