What Happened?
During periods of economic turmoil, “buying gold” has become an important topic. Gold has the characteristics of a safe-haven asset, maintaining or even increasing its value during economic upheaval. Under Trump’s fluctuating tariff policies, there is significant uncertainty in the global economy, driving gold prices to rise significantly.
Of course, the rise in gold prices is driven by multiple factors, including market panic, geopolitical risks, and central banks of various countries reducing their dollar reserves while increasing gold holdings, all of which contribute to the upward pressure on gold prices.
However, if ordinary people choose to buy gold to cope with turbulence—perhaps even the possibility of war—would Bitcoin be a better choice under this premise? Narrowing the focus to the tariff storm brought by Trump, we seek answers from the performance of gold and Bitcoin.
Gold Soars Amid Tariff Chaos
As stock markets plummet like free falls and global markets sell off U.S. Treasuries, an ancient belief resurfaces: gold is the true guardian of value in chaotic times. Whenever financial markets are in distress, the ranks of gold believers expand accordingly. However, in this rapidly changing era, is the notion of gold as the ultimate safe haven still unshakeable? In the current economic turmoil, can its value truly stand firm as people hope?
First, the answer is: yes. A look at recent prices reveals that since the onset of Trump’s tariff war, gold has performed better than ever. After breaking through the $3,000 per ounce barrier for the first time on March 15, it has continued to climb.
Gold is an important safe-haven asset, fundamentally due to its cross-border appeal and inherent scarcity. Whether in the United States, India, China, or globally, gold is widely recognized and in demand. More importantly, the limited supply of gold provides solid support for its value.
In recent years, the allure of gold seems to be intensifying. It took gold 12 years to rise from $1,000 to $2,000 per ounce, but it only took five years to break the $3,000 barrier. This strong upward momentum has been recognized by professional institutions; JPMorgan has named gold its top bullish investment for three consecutive years and even posed the question, “Is $4,000 on the horizon?”
The recent surge in gold prices is closely tied to market turmoil, 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 U.S. dollar reserves.
In the context of Trump’s tariff war and the growing skepticism among global investors about the status of U.S. Treasuries as a “zero-risk” asset, the sustained preference for gold seems to indicate a foreseeable trend.
How to Buy Gold Wisely?
However, it must be recognized that gold itself does not earn interest. Unlike stocks that pay dividends or bonds that yield interest, holding gold does not provide any regular income and may even incur additional costs for storage.
Of course, for those who firmly believe in the long-term value of gold and view it as a safe asset—the “gold believers”—the lack of income is not a primary concern. But for other investors, pouring significant funds into a non-income-generating asset may require careful consideration.
Nonetheless, considering gold’s relative stability and the importance of diversification in an investment portfolio, a small allocation to gold may be a wise move for most people. So how should one purchase gold?
It depends on personal preference. If low cost and convenience are desired, investing in gold exchange-traded funds (ETFs) would be a good choice; in contrast, if one prefers holding physical gold, additional considerations regarding minting and manufacturing costs are necessary.
According to precious metals dealer Grant, the premium for physical gold varies based on product type (coins typically cost more than bars) and purchase volume, averaging between 2% and 5% above spot prices. For budget-conscious buyers, Costco is also a consideration, reportedly charging about a 2% markup.
Additionally, holding physical gold incurs costs such as secure shipping and expenses for purchasing safes or 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 wants to have reserves for wartime, or simply enjoys the tangible feeling of holding physical gold, then purchasing physical gold might indeed be the best choice.
How Does “Digital Gold” Bitcoin Perform?
Another asset known as “digital gold”—Bitcoin—naturally comes to mind for 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 similar to gold, leading some to view it as a potential store of value and safe-haven asset.
So how does Bitcoin perform amid this wave of tariff impacts? Again, to state the conclusion first, compared to gold’s clear safe-haven performance during the tariff storm in April 2025, Bitcoin’s price movements are actually more akin to those of a high-risk asset.
After Trump announced tariff measures on April 2, the price of Bitcoin fell along with global risk assets. In the following days, the price fluctuated within a certain range; however, following the announcement of the tariff suspension on April 9, Bitcoin experienced a sharp rebound.
According to CoinMarketCap data, Bitcoin closed at approximately $85,169 on April 1, but after Trump announced tariffs, it hit a low of $74,436 on April 7, aligning with the downward trend in global stock markets.
The news of tariff suspension on April 9 further stimulated Bitcoin’s price surge. According to CoinMarketCap, the highest price that day reached $83,541, closing at $82,573, an increase of over 8% from the previous day’s closing price.
This dramatic price fluctuation contrasts with gold’s relatively stable upward trend. Traditionally, a safe-haven asset should maintain or increase its value during market turmoil. However, Bitcoin’s performance in April 2025 clearly does not meet this definition.
In the context of Trump’s tariff policies triggering global economic uncertainty, gold once again proves its value as a traditional safe-haven asset. Meanwhile, as an emerging “digital gold,” Bitcoin, while gradually gaining traction among younger generations and investors familiar with digital technology, seems to have yet to demonstrate reliable short-term hedging capabilities in response to sudden, widespread market panic.
Nonetheless, Bitcoin as an asset class is still evolving, and whether it can truly play a reliable hedging role in the future remains to be seen, subject to further validation by the market and the test of time.
Reference: Fortune