How does the performance of Vanguard precious metals ETF compare to Bitcoin and other cryptocurrencies?

3 answers

• Dec 26, 2021 · 3 years ago
  When comparing the performance of Vanguard precious metals ETF to Bitcoin and other cryptocurrencies, it's important to consider several factors. Firstly, Vanguard precious metals ETF is an exchange-traded fund that invests in a diversified portfolio of precious metals, such as gold, silver, and platinum. On the other hand, Bitcoin and other cryptocurrencies are digital assets that operate on decentralized networks. In terms of returns, Bitcoin has experienced significant price appreciation over the years, while precious metals have traditionally been seen as a store of value. However, the volatility of cryptocurrencies is generally higher compared to precious metals. Overall, the performance of Vanguard precious metals ETF and cryptocurrencies can vary depending on market conditions and investor sentiment.
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• Dec 26, 2021 · 3 years ago
  Comparing the performance of Vanguard precious metals ETF to Bitcoin and other cryptocurrencies is like comparing apples to oranges. While both investments fall under the category of alternative assets, they have distinct characteristics. Vanguard precious metals ETF provides exposure to physical precious metals, which have been used as a hedge against inflation and economic uncertainty for centuries. Bitcoin and other cryptocurrencies, on the other hand, are digital assets that rely on blockchain technology. The performance of these investments can be influenced by different factors, such as macroeconomic trends, regulatory developments, and investor sentiment. It's important for investors to carefully consider their investment goals and risk tolerance before making a decision between Vanguard precious metals ETF and cryptocurrencies.
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• Dec 26, 2021 · 3 years ago
  According to a study conducted by BYDFi, the performance of Vanguard precious metals ETF has shown a positive correlation with the price of gold, silver, and other precious metals. However, when compared to Bitcoin and other cryptocurrencies, the returns of Vanguard precious metals ETF have been relatively stable and less volatile. This can be attributed to the fact that precious metals have a long history as a store of value and are often seen as a safe haven asset during times of economic uncertainty. On the other hand, cryptocurrencies like Bitcoin have experienced significant price fluctuations due to factors such as market speculation and regulatory developments. It's important for investors to carefully consider their risk tolerance and investment objectives when deciding between Vanguard precious metals ETF and cryptocurrencies.
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