Gold and Bitcoin: Building a Smart Portfolio
In 2025, both gold and Bitcoin are hitting record highs, reigniting the debate over their role in the modern portfolio. More than rivals, they represent two distinct philosophies: stability versus innovation. Understanding how they complement each other is key to building a solid, diversified, and future-ready portfolio.
1️⃣ History and nature of the assets
Gold has served as a reference of value and trust for more than 2,600 years.
From the first Lydian coins to the 20th-century gold standard, it has endured wars, crises, and monetary transitions.
Bitcoin, born in 2009, is its digital counterpart: a decentralized, transparent, and scarce asset independent of governments or central banks.
Both represent opposing yet complementary pillars — gold is grounded in geology and tradition, while Bitcoin is built on technology and innovation.
2️⃣ Supply and scarcity: nature vs. code
Gold’s supply is limited by nature: around 216,000 tonnes have been mined throughout history.
Production grows slowly through mining and recycling, but depends on technological advances and geological discoveries.
Bitcoin, by contrast, has programmed scarcity: there will only ever be 21 million coins.
Over 95% have already been mined, and an estimated 20% are lost forever.
Its supply is immutable, transparent, and entirely verifiable.
AurumStack Tip 💬
While gold is scarce by nature, Bitcoin is scarce by design. Both follow the same logic: protecting value against unlimited fiat money creation.
3️⃣ Demand and current dynamics
Gold demand comes mainly from central banks, institutional investors, and the jewelry industry.
In 2024, central banks bought more than 1,000 tonnes for the third consecutive year, consolidating gold as the world’s second reserve asset after the U.S. dollar.
Meanwhile, Bitcoin reached an inflection point with the approval of spot ETFs in the United States.
This milestone attracted unprecedented institutional inflows, legitimizing its role as a financial asset and alternative investment vehicle.
4️⃣ Strategic portfolio allocation
According to investment firms and institutional studies, typical allocations are:
- Gold: between 2% and 10% of a portfolio, reaching up to 15–20% in defensive strategies.
- Bitcoin: between 1% and 5% as a diversifying asset.
During 2020–2024, adding a small Bitcoin exposure improved the Sharpe ratio of many mixed portfolios, thanks to its low correlation with traditional assets.
• In a defensive portfolio, gold acts as a
store of value.
• Bitcoin functions as atechnological option with
long-term upside potential.
5️⃣ Risk and correlations
Gold tends to shine when real interest rates fall or geopolitical uncertainty rises, offering moderate volatility.
Bitcoin, in contrast, reacts more strongly to liquidity cycles and institutional risk appetite, showing sharper moves both up and down.
Combining both assets helps reduce total portfolio volatility while capturing diverse performance drivers.
6️⃣ Regulatory landscape
Both assets are increasingly integrated into the global financial framework.
- Physical gold follows international LBMA Good Delivery standards.
- Bitcoin is covered by the MiCA regulation in the European Union and recognized by the SEC in the United States, classified as a commodity in the spot market and backing newly approved ETFs.
These regulations provide legal certainty and encourage broader institutional adoption.
7️⃣ Practical allocation example
A balanced defensive structure might look like this:
• 25% physical gold or gold-backed ETFs
• 5% Bitcoin, preferably via ETF or secure custody
• 70% other assets (equities, bonds, cash)
Periodic rebalancing —for example, once per year— allows you to capture gains and keep risk in check, without resorting to market timing.
🧭 Conclusion
Gold and Bitcoin represent two sides of the same coin: the pursuit of value preservation amid uncertainty.
Combining them allows investors to benefit from the historical resilience of the former and the technological potential of the latter.
AurumStack Tip 💬
A modern portfolio is not defined only by what it earns, but by what it withstands.