Where is the Safe Haven Against the Weakening of the USD: Gold or Bitcoin? Goldman Sachs Reveals

Goldman Sachs has predicted that the price of gold could reach $4,000 an ounce, arguing that the safest haven against a weakening dollar is gold. According to this organization, gold will surpass both Bitcoin and silver in this process. Recalling that investors have sold gold and shifted to treasury bonds as U.S. interest rates rose over the years, Goldman Sachs commodity strategist Lina Thomas stated that this relationship worsened after Russia invaded Ukraine in February 2022. The freezing of assets of the Central Bank of Russia by Western financial authorities has shaken confidence in the dollar and the euro, which are considered safe havens. According to Thomas, this development is a warning, especially for central banks: “If your assets can be frozen by foreign politicians, then those assets are no longer truly safe.” According to analysis by Goldman Sachs, this unstable environment has led central banks around the world to increase their gold purchases. The average amount purchased was 17 tons per month before 2022, reaching 22 tons after the Ukraine war and 94 tons by 2025. Major producers, especially China and Russia, have shifted to gold; China aims to convert 20% of its reserves into gold. Goldman Sachs stated that this rapid increase in demand could push gold prices up nearly 30% to $4,000 an ounce. The low volatility and low correlation with stocks make gold attractive to investors. Daan Struyven, co-director of commodity research at the firm, stated: “Bitcoin and gold also provide protection against inflation due to their limited supply, but gold is a stronger choice because it is less volatile and has lower correlation with tech stocks.” Struyven stated that the correlation between Bitcoin and technology stocks, along with its high volatility, makes this currency riskier during economic downturns, which explains why central banks are hoarding gold instead of Bitcoin or silver. Regarding silver, Thomas points out three main reasons: Silver oxidizes and depreciates over time, it is much bulkier and harder to transport than gold, and it is not considered a reserve asset by the IMF. “Silver is outside the purview of central banks; it is more like an industrial metal.” According to Goldman Sachs, the gold market only accounts for 0.5% of the stock market, so even a small amount of gold allocated to an investment portfolio can create significant price volatility. Thomas’s final message: “Gold is no longer just a historical relic. Gold is regaining trust against the dollar, which has lost the confidence of macro investors.”