What Happened?
During times of economic turmoil, “buying gold” has become an important topic. Gold possesses the characteristics of a safe-haven asset, maintaining or even increasing its value during economic upheaval. Under Trump’s fluctuating tariff policies, global economic uncertainty has significantly driven up gold prices.
Of course, the rise in gold prices is influenced by multiple factors, including market panic, geopolitical risks, and central banks in various countries reducing their dollar reserves while increasing their gold holdings, all of which contribute to the upward pressure on gold prices.
However, if the general public chooses to buy gold to cope with turmoil—even the possibility of war—would Bitcoin be a better choice under this premise? Narrowing the scope to the tariff storm brought by Trump, we can look for answers from the performances of gold and Bitcoin.
Gold Soars Amid Tariff Chaos
As the stock market plummets like a free fall and global markets sell off U.S. Treasury bonds, an ancient belief resurfaces: gold is the true guardian of value in chaotic times. Whenever financial markets are fraught with tension, the ranks of gold believers expand. Yet, in this rapidly changing era, is the notion of gold as the ultimate safe haven still unshakable? In the current economic turmoil, can its value truly stand firm as people hope?
The short answer: yes. A glance at recent prices reveals that since the onset of Trump’s trade war, gold has performed better than ever. After surpassing the $3,000 per ounce mark on March 15, it has continued to climb.
Gold is a crucial safe-haven asset, fundamentally due to its cross-border appeal and inherent scarcity. Regardless of location, whether in the U.S., India, China, or globally, gold is widely recognized and in demand. More importantly, gold’s limited supply provides solid support for its value.
In recent years, gold’s allure seems to have intensified. It took 12 years for gold to rise from $1,000 to $2,000 per ounce, but it only took a mere 5 years to break through the $3,000 barrier. This strong upward momentum has also been recognized by professional institutions; JPMorgan has named gold its top bullish investment target for three consecutive years, even questioning whether “$4,000 is on the horizon?”
The recent surge in gold prices is closely tied to market volatility, but a deeper driving force comes from the complex geopolitical landscape. Central banks around the world are accumulating gold at an unprecedented pace, a strategic move aimed at reducing the proportion of dollar reserves.
In the context of Trump’s trade war and growing doubts among global investors regarding U.S. Treasuries as a “zero-risk” asset, the continued preference for gold seems to indicate a foreseeable trend.
How to Buy Gold?
However, it must be recognized that gold itself does not generate interest. Unlike stocks that pay dividends and bonds that yield interest, holding gold does not provide any regular income, and it may even incur additional costs due to storage. Of course, for those who firmly believe in gold’s long-term value and view it as a safe asset—referred to as “gold believers”—the lack of income is not a primary concern. But for other investors, committing large amounts of capital to a non-income-generating asset may require careful consideration.
Nevertheless, considering gold’s relative stability and the importance of diversification in an investment portfolio, allocating a small portion to gold may be a wise move for most people.
So, how should one purchase gold for the best outcome? It depends on personal preference. If low cost and convenience are priorities, investing in gold exchange-traded funds (ETFs) would be a good choice. Conversely, if one prefers to hold physical gold, additional costs related to minting and production should be considered.
According to precious metals dealer Grant, the premiums on physical gold vary by product type (coins are generally more expensive than bars) and purchase quantity, typically ranging from 2% to 5% above spot prices. For budget-conscious buyers, Costco is also an option worth considering, reportedly offering a markup of about 2%.
Additionally, holding physical gold incurs costs such as secure shipping fees and expenses for purchasing safes and other secure storage equipment to prevent theft.
Overall, from a cost perspective, buying gold ETFs is more advantageous. However, if one is deeply concerned about economic collapse and seeks to establish wartime reserves, or simply enjoys the tangible sense of holding physical gold, then purchasing physical gold may indeed be the best choice.
How Does “Digital Gold” Bitcoin Perform?
Another asset known as “digital gold”—Bitcoin—naturally invites comparison. Bitcoin is a decentralized digital currency that does not rely on any central authority or government for issuance and management. Its limited supply (capped at 21 million coins) gives it a scarcity akin to gold, leading some to view it as a potential store of value and safe-haven asset.
So, how did Bitcoin perform amid this tariff shock? Once again, the conclusion is that, compared to gold’s clear safe-haven performance during the April 2025 tariff turmoil, Bitcoin’s price behavior aligns more closely with that of high-risk assets.
After Trump announced the tariff measures on April 2, Bitcoin’s price fell along with global risk assets. In the following days, its price fluctuated within a certain range, but with the announcement of the tariff suspension on April 9, Bitcoin’s price rebounded sharply.
According to CoinMarketCap data, Bitcoin’s price closed at approximately $85,169 on April 1, but fell to a low of $74,436 on April 7 following the tariff announcement, mirroring the broader downward trend in global stock markets.
The news of the tariff suspension on April 9 further stimulated a significant surge in Bitcoin’s price. According to CoinMarketCap data, the highest price that day reached $83,541, closing at $82,573, up more than 8% from the previous day’s close.
This dramatic price fluctuation contrasts sharply with gold’s relatively steady upward trend. Traditionally, safe-haven assets should maintain or increase their value during market turmoil. However, Bitcoin’s performance during the April 2025 episode clearly does not align with this definition.
In the context of Trump’s tariff policies triggering global economic uncertainty, gold has once again proven its value as a traditional safe-haven asset. Meanwhile, as an emerging “digital gold,” Bitcoin, though gradually gaining traction among younger generations and tech-savvy investors, appears to lack reliable “short-term” hedging capabilities in the face of widespread market panic.
Nonetheless, Bitcoin as an asset class continues to evolve, and whether it can truly fulfill a reliable hedging role in the future remains to be validated by the market and tested by time.
Reference Material: Fortune