Bitcoin and Gold: a strategic alliance for uncertain time

In recent months, markets have reminded us how difficult it is to navigate among persistent inflation, rising public debt, geopolitical instability and an increasingly fragile monetary system. In this context, many investors are asking a fundamental question: 

Are there still instruments that can protect capital and, at the same time, capture real growth opportunities? 

Two assets, two functions, one strategy 

On the one hand, Gold. For centuries considered the ultimate safe haven asset, it maintains its value even during the harshest phases of economic crisis. Its protective function is now historically established. 

On the other, Bitcoin. A young asset, but with unique characteristics: absolute scarcity (21 million), no debt, independence from central banks, decentralization. And, most importantly, an average performance over the past 10 years that has exceeded that of any other asset. 

Their combination into one dynamic strategy is no longer just a theory, but a reality: it is called the Diaman Bitcoin & Gold Index, an index that dynamically combines exposure between the two assets based on the macroeconomic environment. 

Why are central banks hoarding gold? 

Figure 1: Central bank net flows, tonnes in bullion

As the chart above, taken from the Financial Times, shows, we are experiencing one of the greatest historical phases of net gold buying by central banks. 

After decades of selling (especially in the 1990s and 2000s), the reversal is clear: since 2008, gold has again become central to sovereign reserve management, with a sharp spike after the outbreak of the conflict in Ukraine. 

Why?  

• Gold is a real asset, representing no one's debt. 

• It has no counterparty risk. 

• It is accepted everywhere and maintains value over time. 

• Most importantly: it works at times when other assets suffer. 

If even central banks are returning to gold, perhaps we should ask ourselves some questions at the individual level as well. 

What about bitcoin? 

Despite the volatility, Bitcoin has demonstrated very different behavior from traditional assets. Currently above 100,000$ , supported by institutional interest and an increasingly established narrative as "digital gold." 

Its characteristics of scarcity, portability and independence make it complementary to gold, not a substitute. Together they form a decorrelated pair, able to cope more effectively with economic cycles.  

Bitcoin grows, even against gold 

While gold continues to be hoarded by central banks, Bitcoin is increasingly gaining ground. 

Figure 2: Comparison of the market capitalization of Bitcoin and Gold - Source: Statista & CoinGecko

In the chart shown, we see how Bitcoin's market capitalization, while still a fraction of that of gold, has shown steady growth in recent years, both in absolute and relative terms. 

Figure 3: BlackRock's Bitcoin ETF, AUM has quickly surpassed its historic Gold ETF in size - Source: BlackRock

In Figure 3 we also see how BlackRock's ETF on Bitcoin, launched early last year, surpassed the same management house's historic gold ETF, reaching $57.8 billion, compared to $33.2 billion for gold. An unmistakable sign that Bitcoin is also gaining space in institutional portfolios, no longer just as a short-term speculative bet, but also as a long-term strategic component. 

In an age where trust in traditional systems falters and correlations between assets grow, building a truly diversified portfolio means looking beyond classic investment categories. The Gold + Bitcoin combination, especially when managed with dynamic and quantitative logic, represents one of the few strategies today that can offer both protection and potential. 

And have you, in your portfolio, already considered this possibility? 

If you are interested in learning more write it in the comments!