In response to the devaluation of the US dollar, precious metals are experiencing a significant rise. Gold has reached an impressive $4,000 per ounce, while silver has soared to over $50 per ounce, marking its highest point in 45 years. However, this surge in precious metals might be losing momentum as investors start exploring alternative assets like Bitcoin (BTC) and tokenized real-world assets.
This year alone, gold has seen a remarkable increase of more than 50%. According to Nic Puckrin from Coin Bureau education company and Goldman Sachs’ prediction of gold reaching $4,900 by the end of 2026 indicates that gold might be “overheated.” He commented:
“Following such a substantial rally in gold prices this year-to-date, attention may shift towards other options with similar value propositions. These include various metals and commodities as well as tokenized real assets and Bitcoin which still appear undervalued compared to gold.”
Puckrin also noted that these alternatives act as safeguards against inflation in fiat currencies and geopolitical instability.
Bitcoin achieved an unprecedented high exceeding $126,000 last October alongside historic rises in precious metal values. Concurrently there is growing skepticism about the US dollar’s stability which is heading for its worst performance since 1973.
Bitcoin Set to Gain from Declining US Dollar
The Kobeissi Letter analysts reported on Sunday: “The USD is poised for its most challenging year since 1973 having fallen over ten percent so far this year alone while losing forty percent purchasing power since two thousand.”
The depreciation of the US dollar triggered simultaneous interest both into store-of-value assets typically considered safe havens alongside riskier investments traditionally moving inversely relative each other—safe-haven stores usually appreciate when riskier stocks decline vice versa too.
This trend suggests investors are reevaluating asset pricing within what analysts describe as ‘a new era monetary policy’, characterized by higher inflation rates where governments finance operations through further currency devaluation resulting overall asset price increases across board they explained further Matt Hougan Bitwise Investment Firm’s Chief Investment Officer anticipates BTC will climb during Q4 amid continued currency weakening prompting wealth preservation strategies favoring secure haven investments .