Ed Yardeni says gold is the best safe-haven play and 'the new bitcoin'

Market veteran Ed Yardeni of Yardeni Research asserts that gold has surpassed Bitcoin as the preferred safe haven asset, labeling it 'the new Bitcoin' amidst escalating geopolitical risks. He highlights gold's historical resilience against Bitcoin's speculative nature, noting gold's significant outperformance with a 60% gain in 2025 compared to Bitcoin's 20%, alongside recent strength as Bitcoin experienced substantial liquidations and liquidity challenges. Yardeni projects gold to reach $5,000 by 2026 and potentially $10,000 by the decade's end, solidifying its appeal for risk-off institutional capital.

Analysis

Market veteran Ed Yardeni of Yardeni Research asserts that gold has supplanted Bitcoin as the premier safe-haven asset, labeling it "the new Bitcoin" amid rising geopolitical concerns. Gold has significantly outperformed Bitcoin year-to-date, surging 60% in 2025 compared to Bitcoin's 20% gain, highlighting gold's traditional role as a hedge against risk versus Bitcoin's more speculative nature.

Over the past month, gold gained over 13%, while Bitcoin slipped 3%, with a further 4% rally for gold and 9% tumble for Bitcoin in the last week. Yardeni attributes Bitcoin's recent slump to substantial liquidity issues, including $19 billion in futures and leveraged position liquidations, leading to auto-deleveraging and market-maker withdrawals. This contrasts sharply with gold's rally following potential 100% tariffs against China, where Bitcoin fell.

Yardeni has raised his gold price targets, projecting $5,000 by 2026 and potentially $10,000 by the decade's end, having already seen the metal surpass his initial $4,000 target to reach $4,200. This bullish outlook reflects increasing investor preference for gold as protection against mounting geopolitical risks, positioning it as a more reliable store of value than volatile digital assets.

Key Decisions for Investors

• Consider increasing exposure to gold (e.g., GLD, BAR) as a primary geopolitical hedge, given its strong outperformance and Yardeni's bullish long-term price targets.
• Re-evaluate Bitcoin allocations, recognizing its increased correlation with risk-on assets and susceptibility to liquidity events, especially for portfolios seeking true safe-haven characteristics.
• Monitor global geopolitical developments and central bank policies, as these factors are increasingly driving capital flows into traditional safe havens like gold and potentially silver (e.g., SLV, PSLV).