Crypto vs gold vs stocks: Where should investors put money? Experts answer

Bitcoin is up around 26 per cent in one month, and Gold prices are up 7.6 per cent in a month, putting the spotlight back on alternative investments as investors weigh the risk-reward trade-off between crypto, equities and gold. While experts remain cautious on digital assets, equities continue to emerge as the preferred vehicle for long-term wealth creation, with gold retaining its role as a portfolio hedge.

Market experts broadly see equities as having the strongest structural case over the next decade, while gold is viewed as an important diversification and defensive asset. Crypto, despite its potential for outsized returns, continues to be associated with considerably higher volatility and regulatory uncertainty.

Jateen Trivedi, VP research analyst, commodity and currency at LKP Securities, said equities have delivered more consistent long-term compounding,“over the longer term, equities have delivered more consistent compounding if a disciplined way is used, like index-based small-cap, mid-cap, and large-cap allocations, but it also needs to be tracked,” Trivedi said.

For crypto, Trivedi noted that the asset class has generated the highest returns over certain periods, but with substantially higher volatility and drawdowns, ”hence keeping a smaller amount in assets which can give higher returns suits better rather than keeping a major part of portfolio and having drawdowns,” he said.