Bitcoin - US$2452 Source: Coindesk
Gold - US$120.72 Source: GLD etf
Silver - US$16.38 Source : SLV etf
S&P 500 - US$243.36 Source: SPY etf
I believe the winner will be Silver. If not, it’ll likely be Bitcoin.
Since Q3 2014 the S&P 500 has gained value due to P/E expansion, not earnings increases. P/E expansion can continue, but without earnings growth gains will be limited.
The problem with gold is that it’s really just another currency. And, as interest rates increase the value of the US$ will likely increase against other currencies. The only way gold will lead the pack by year-end is a massive US$ devaluation. Possible, but unlikely.
The total value of Bitcoin in circulation is around US$39.65 billion. To double its value would require an increase of another $39.65B, about 5% of Apple’s market cap. And, Bitcoin is the darling of the same crowd that stands in front of the Apple store 2 hours before it opens. The internet stocks of 1998-2000 defied gravity longer than many thought possible, this could too!
Unlike gold, silver has many uses beyond jewelry and currency (store of value). Electronics, medicine, photovoltaic cells, etc. And, according to the Silver Institute demand has outstripped supply for quite a while. My timing could be way off, but I like the idea of buying something that is becoming more scarce.
Time will tell who the winner is!
William "David" Wedeking - President of Jade Reserves, Inc. and publisher of Sensible Speculation