How gold's role in a portfolio differs from cryptos

Gold last traded at $1,724 an ounce. Silver at $26.59 an ounce.

NEWS SUMMARY: Precious metal prices traded mixed Monday as interest rates softened and the dollar firmed. U.S. stocks rallied as retreating Treasury yields eased concerns about inflation that would undermine equity valuations.

GoldHub--"The rapid ascent of cryptocurrencies over the past year has drawn the attention of investors. Often, investments in cryptos are equated to investments in gold. Despite some apparent similarities, we believe that gold stands apart from cryptocurrencies, both fundamentally and practically.

The advent of blockchain and cryptocurrencies has catalyzed innovation in the financial industry. Their proliferation and recent exponential price increase have captured investors' imaginations. However, the recent developments in blockchain and cryptocurrencies do not imply that cryptocurrencies are a substitute for gold.

The argument that gold and cryptocurrencies are similar appears to stem from perceptions of: their limited supply and their role as alternatives to fiat currencies.

However, this comparison is simplistic and overlooks fundamental differences between gold and cryptocurrencies - not only in terms of their market dynamics but also in terms of their performance and the role they play in portfolios.

The sources of demand for gold are very different from those for cryptocurrencies. For more than 2,000 years, gold has served as means of exchange and been used as a store of value. Gold is owned by institutional and individual investors, as well as by central banks."