The Bid 235: Gold and Bitcoin as Portfolio Diversifiers: Why Interest Is Rising Now
Gold and bitcoin are in the spotlight again - and for good reason. In this special narrative format episode of The Bid, host Oscar Pulido weaves together expert insights from previous Bid episodes to explain why interest in gold and bitcoin is rising now and what investors should consider before treating them as portfolio diversifiers.
You’ll hear from BlackRock experts about gold’s enduring role and how growth fears, geopolitics, the U.S. dollar and real interest rates shape demand; and about bitcoin’s design - digital assets, blockchain, cross-border payments - and engineered scarcity, plus the reality of cycles and operational considerations and how both can fit into a portfolio alongside traditional holdings.
Check out the previous episodes in full:
133. The Next Gold Rush - original air date June 16th 2023: https://open.spotify.com/episode/7IWodwijM5Ybq1QvwOQBkw
161. Crypto Currency Decoded - original air date Jan 19th 2024: https://open.spotify.com/episode/6Rcxfg9rci1ZXniqRKbtRp?si=HnSkLmPsTyeSrK2LXLbwVA
Key moments in this episode
00:00 Introduction: Gold and Bitcoin in Focus
02:14 The Role of Gold in Portfolios
02:58 Gold's Relationship with Economic Factors
05:49 Gold as a Diversifier and Inflation Hedge
09:02 Transition to Bitcoin: Digital Scarcity
09:42 Understanding Bitcoin and Digital Assets
12:19 Bitcoin's Volatility and Market Cycles
13:37 Bitcoin's Growing Accessibility
15:30 Comparing Gold and Bitcoin as Diversifiers
17:11 Conclusion: Preparing Portfolios with Gold and Bitcoin
Featured experts:
- Gargi Pal Chaudhuri —Chief Investment & portfolio Strategist (gold)
- Robbie Mitchnick — Head of Digital Assets (bitcoin & blockchain)
- Samara Cohen — Global Head of Market Development for BlackRock , and formerly Chief Investment Officer, ETF and Index Investments (bitcoin)
- Jay Jacobs — U.S. Head of Equity ETFs (portfolio construction)
Sources: CFA Institute report "Gen Z and Investing: Social Media, Crypto, FOMO, and Family," May 2023; Coin Metrics, as of Aug. 2023. Bitcoin predominance based on its market cap of $530B which accounts for 50% of the total market cap of all crypto-assets excluding stable coins; The Global Findex Database 2021 identifies opportunities for increasing financial inclusion, July 2022; CoinGecko, as of Jan. 2. 2023. Bitcoin predominance based on its market cap of $860 billion, which accounts for 51% of the $1.7 trillion total market cap of all cryptoassets, excluding stablecoins
gold; bitcoin; diversification; portfolio diversifiers; real interest rates; U.S. dollar; central bank buying; stagflation; digital assets; blockchain; cross-border payments; fixed supply; volatility; correlation; ETFs; access & integration; risk management; rebalancing; inflation
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