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The stock market got a major roller-coaster ride this week, with the S&P 500 (^GSPC) falling 2.6% before clawing back gains on Friday.
But both bitcoin (BTC-USD) and gold (GC=F), the modern and traditional “stores of value,” had even wilder runs, falling around 20% and 7%, respectively.
Both, like stocks, got some of their gains back.
Those big numbers, especially for gold, highlight a truth investors are learning to reckon with: Stores of value just aren’t what they used to be. Particularly for gold, a millennia-old store of wealth, which is seeing its classical role upended by volatility.
In a sense, it’s positive — if you own gold. Prices are up for the week, sitting at just under $5,000. They’ve risen about 14% so far this year. And there’s a good chance we’ll see it rise more.
JPMorgan analysts, for instance, have doubled down on gold, forecasting demand from central banks and investors to push prices to $6,300 per ounce by the end of the year. That would mark a roughly 25% increase.
Read more: Thinking of buying gold? Here’s what investors should watch for.
Geopolitical instability, the “debasement” of fiat currencies, and unresolved questions over debt loads have fueled gold’s historic rise. A weakened insert-your-asset-of-choice has encouraged investors to cling to hard assets.
Gains though they are, they reflect some wild, meme-stocky numbers that at least somewhat diminish gold’s utility as a place to park value. Because, as we all know, what goes up that fast can also go down that fast.
The crash earlier in the week punctuated what one expert described as a “breathtaking and profoundly scary” rise in precious metals.
The price action created charts that looked like they belonged to stocks. Analysts could explain the moves behind the volatility, but some investors decided to just wait it out.
Others, seizing the moment, both in the immediate sense and in our larger cultural shift toward casino-like amusements, bought the dip.
An uncomfortable idea surrounding safe-haven assets is to think about the economic and political conditions required for their success.
If you hold any crypto, though, you may not want to think too deeply about anything right now.
The comeback in stocks and gold’s staggering climb make for a painful contrast. Bitcoin prices fell as low as $61,000 on Thursday. And even with a recovery on Friday to $70,000, the top digital currency is down about 44% from its October peak.
Crypto evangelists may have pitched bitcoin as 21st-century digital gold. But the new gold isn’t bitcoin — it’s just more volatile gold.
Amid all this, the dollar, for all its movement, looks stable in comparison.
If you’re looking for stable value, there are probably places and moments to find it. But there’s one clear winner in this week’s — and this year’s — market story: diversification.
Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban.
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