Golden coin closeup

Which of the 2 investment vehicles might work better as a store of value? Would it be the classic precious metal of the old school or the more recently created technology accessed electronically?

If you excluded stocks and bonds from the concept and had to choose gold or bitcoin. Ones been around forever, the other is as new as it gets.

Over the past 2 or 3 weeks, the cryptocurrency has come back strong after a long period of decline. Compared, for example, to the stock market, bitcoin has more than held in there lately.

Whether it now falls into the store of value category remains a question, given how far its fallen from its all time highs.

Bitcoins daily price chart looks like this:

Bitcoin daily price chart, 4 4 20.

You can see how the cryptocurrency has rallied from mid-March to the present, from just under 5250 to just above 6700. Nice move except that its failed to make it back to that early February high of 10250.

Its not back to the September, 2018 high just above that. The trend here remains downward with a series of lower highs and lower lows.

Bitcoins weekly price chart looks like this:

Bitcoin weekly price chart, 4 4 20.

The last 3 weeks worth of rally is not all that dramatic when viewed on this time frame. Bitcoin has remained above the lows of that period from late 2018 into early 2019 but you can see how far off the price is from the June/July, 2019 highs and the late 2017 all time high of above 18000.

Note that the cryptocurrency has not yet been able to climb above the Ichimoku cloud on the weekly or daily price chart.

Gold looks like this on a daily price close basis:

Gold daily price chart, 4 4 20.

The month of March has yielded incredible volatility in commodity markets and the gold market did not escape it. Note, however, that somehow the price managed to stay above the late 2018 lows. Its rallied more than halfway back to the early March high and seems poised to retake a level back above the Ichimoku cloud. Its almost there.

Gold looks like this when viewed on a weekly basis:

Gold weekly price chart, 4 4 20.

This is the price chart of an uptrend that remains in place. The March dip took it below the November/December lows, but never sagged into or below the up trending Ichimoku cloud. This, despite the extraordinary massive levels of selling as indicated by the red volume bars for the period, seen below the price chart.

So, during the stock market sell-off and with government bonds yielding next to nothing (in return for safety) and with the price of oil in free fall, to which might investors turn: gold or bitcoin?

So far, Id say the precious metal, but who knows what the future holds especially in this strange and uncertain time. Under these circumstances, no matter what, I would be cautious about declaring anything a store of value.

I do not hold positions in these investments.No recommendations are made one way or the other.If you're an investor, you'd want to look much deeper into each of these situations. You can lose money trading or investing in stocks and other instruments. Always do your own independent research, due diligence and seek professional advice from a licensed investment advisor.

Continue reading here:

The Price Of Gold And The Price Of Bitcoin - Forbes